Mortgage Market Update – June 22nd, 2020
Previous Week Recap
The increasing number of “out of office” email responses I am receiving suggests the coronavirus pandemic is having little impact on summer vacation plans. Trading activity is also reminiscent of summer’s past (light flows) which is particularly noteworthy given the substantive dislocations experienced over the last few months. Both the Dow and S&P ended the day lower on Friday in an uninspired session, though both indexes were up over 1% for the week. Treasury yields remained pinned in place and mortgage pricing was essentially unchanged as well.
This week’s economic calendar is unlikely to shake market participants out of their summer doldrums as the data is largely second tier. Existing Home Sales for May is scheduled for release at 10:00ET today and is expected to show a 3% decrease from the month prior to 4.12 million annualized units.
Equity futures are pointing to a positive NY open even as news reports emerged that the coronavirus curve has taken a troubling trajectory shift. Treasury yields are starting the day roughly in line with Friday’s closing levels.
Have a great week everyone!
Head of Capital Markets, Southern Trust Mortgage