WTMS Blog Today = What’s up in Mortgage Today – 12/02/24 >>>>
UMBS opened the week down 34 basis points following the Thanksgiving holiday weekend and closed at 99.99, down 16 basis points. Stock futures edged up slightly by 0.5 points. Market movement was influenced by positioning activities like month-end trading, new-month repositioning, and short covering, amplified by the holiday’s light liquidity. The week ahead holds critical data releases, including ISM numbers and the jobs report, alongside remarks from Jerome Powell and other Federal Reserve officials. October’s economic data showed modest gains in personal income and spending, with food prices easing and energy prices dropping significantly. Pending Home Sales climbed 2% in October, narrowing the price gap between new builds and existing homes to the lowest level since the 1980s due to the rate lock-in effect. Treasuries slipped as corporate bond offerings surged, while the Federal Reserve remains focused on employment data. Expectations of a 200,000 increase in November’s payrolls are in the spotlight, influencing potential rate cuts at the next FOMC meeting. Despite the day’s losses, bond yields are still 20 basis points lower than two weeks ago, a sign of resilience amid minimal bond-friendly news.

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