Political turmoil ruled the roost today, after President Trump acknowledged that he shared classified information with The Russian. The source of the information is quite troubled over the fact that information was released without their consent. While others feel that the President had every right to declassify the documents.
As for the markets, The Dollar is now at its weakest level since the Election! With that, The Dow closed two points and Nasdaq rose again. Oil prices ended the day 1.3% lower, as data revealed that stock-piles had grown this past week. The 10-year bond closed to 2.32% dropping by .02% after being as high as 2.36%.
This morning we had more conflicting data. Housing starts were down 2.6% in April, while March was revised lower as well. It appears that builder’s sentiment hasn't trickled down to permits and starts either. On the flip side, industrial production rose by 1.00%. Which is far more than the .4% that was expected.
The gap between strong "soft" data and tepid "hard" data has grown bigger. The enthusiasm in sentiment must trickle down to the hard facts. If we are going to have a strong second quarter. I say the jury is still out on that!
Mortgage rates continue to move sideways (as in nowhere). As for products, the 30-year fixed mortgages are still the favorite contender, with the 7 and 10-year ARM following close behind. What is interesting, is that many fewer borrowers today have been opting for a 15-year fixed. Could it be the higher rates? Keeping costs down? Or are they no longer affordable? Or perhaps all the above!