Tragic and busy are the two best words to describe the past 24 hours. First came the terrorist bombing in Manchester, England. Yet another sober reminder of the evil that pervades the world. Markets were somber at first. Then came the busy part.
New Home sales fell 11.5% but March was revised upward. Could this be a bump in the road? Flash Markit Services PMI rose to a four-month high. While Flash Markit manufacturing PMI fell to an eight-month low.
The White House released it's 2018 budget. The budget demonstrates a scenario where we can go back to 3% growth. Which is wishful thinking with all the mixed data lately. They also wish to essentially defund the CFPB and cut programs for housing and other key initiatives that help to support the lower part of our citizens.
The results for today’s start with the Dow gaining 43 points for fifth straight session after last Tuesday's debacle. Meanwhile, the Dollar was a bit stronger, and the 10-year bonds rose to 2.28% due to mixed data and the abundance of new bonds this week. Thus, increased supply always helps to bring prices down and yields up. Yet, Mortgages rate are still very stable. If the 10-year treasury stays below the key 2.30% we shouldn't have to worry about rates going up for now. 4.00% is the national average but 3.75% can be found if you do your homework!!
Tomorrow the Fed's minutes from the last meeting are released and we can continue the debate of hike or not.