Updated on June 16, 2017 10:12:07 AM EDT
Mays Housing Starts was posted at 8:30 AM ET this morning. The Commerce Department announced a 5.5% decline in new home groundbreakings when forecasts were calling for an increase in starts. This means the new home portion of the housing sector appears to be much weaker than many had thought. That is good news for bonds and mortgage rates. However, this report doesn’t carry a significant amount of importance, preventing a stronger reaction to the favorable news.
Also posted this morning was the preliminary reading to the University of Michigans Index of Consumer Sentiment for June. It came in at 94.5 that was well below both the 97.0 that was expected and May’s final reading of 97.1. This means that surveyed consumers were much less comfortable with their own financial and employment situations than they were last month. Because waning confidence usually translates into softer levels of consumer spending that fuels economic growth, we can also consider this data good news for bonds and mortgage rates.
Next week is very light in terms of relevant economic reports and other events that may influence mortgage rates. There are only a couple of monthly reports scheduled, with the majority of them focusing on the housing sector. None of the week’s events are set for Monday, so expect stocks and weekend news to be the largest factors as the week starts. Look for details on all of next week’s activities in Sunday evening’s weekly preview.
©Mortgage Commentary 2017