Updated on February 24, 2017 10:52:26 AM EST
There were two 10:00 AM ET economic reports posted this morning. The Commerce Department announced that sales of newly constructed homes rose 3.7% last month, falling short of expectations. The fact we saw an increase in sales indicates strength in the new home portion of the housing sector. However, since the increase was not as much as analysts were expecting to see, we can consider the data neutral to slightly favorable for mortgage rates.
Also posted this morning was the University of Michigans revised Index of Consumer Sentiment for February. It came in at 96.3, exceeding forecasts of 95.8. This means that more surveyed consumers felt better about their own financial and employment situations than many had thought. Because rising confidence usually means consumers are more willing to spend, this is slightly negative news for bonds and mortgage pricing.
Next week brings us the release of a handful of reports that may influence mortgage rates, some of which are pretty important to the markets. We won’t get the Employment report but will get the ISM manufacturing index next week. Monday does have a release and its one of the more important reports we get each month (Durable Goods Orders). Look for details on next week’s calendar in Sunday evening’s weekly preview.
©Mortgage Commentary 2017