{"id":8878,"date":"2020-02-19T21:07:56","date_gmt":"2020-02-19T21:07:56","guid":{"rendered":"https:\/\/intelliloan.com\/blog\/?p=8878"},"modified":"2024-10-16T19:15:38","modified_gmt":"2024-10-16T19:15:38","slug":"market-paying-close-attention-to-the-fed-and-inflation-data-today","status":"publish","type":"post","link":"https:\/\/intelliloan.com\/insights\/market-paying-close-attention-to-the-fed-and-inflation-data-today\/","title":{"rendered":"Market Paying Close Attention To The Fed And Inflation Data Today"},"content":{"rendered":"

Stock indexes opened a little better this morning,<\/strong>\u00a0and the interest rate sector unchanged from yesterday at 8:00 am ET this morning.<\/p>\n

Weekly MBA mortgage applications were a bit soft last week;<\/strong>\u00a0composite apps -6.4% from the prior week, purchase apps -3.0%, and refinance apps -8.0%. Yesterday though MBAs Builder Application Survey data for January 2020 shows mortgage applications for new home purchases increased 35.3% compared to a year ago. Compared to December 2019, applications increased by 40%. MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 865,000 units in January 2020, based on data from the BAS. The seasonally adjusted estimate for January is an increase of 25.5% from the December pace of 689,000 units. On an unadjusted basis, MBA estimates that there were 66,000 new home sales in January 2020, an increase of 37.5% from 48,000 new home sales in December. Conventional loans composed 69.5% of loan applications, FHA loans composed 17.8%, RHS\/USDA loans composed 0.8 percent, and VA loans composed 12%. The average loan size of new homes increased from $338,625 in December to $346,140 in January.<\/p>\n

At 8:30 am ET Jan PPI;<\/strong>\u00a0expected +0.1% increased 0.5%; yr\/yr +2.1% on expectations of 1.7%. The core PPI thought to be up 0.1% also increased 0.5%, yr\/yr +1.7% from +1.1% in Dec. Yr\/yr PPI less food and energy and trade services was expected +1.3%, as released +1.5%. Those headlines were somewhat surprising, but with all of the disruptions caused by the virus, we don’t see it as a serious increase in inflation in the long run. Traders didn’t take it well; before the release, the 10 yr was unchanged at 1.56%; it increased to 1.58%, and MBS prices that were unchanged from yesterday dropped 6 bps.<\/p>\n

At 8:30 am ET, Jan housing starts and permits<\/strong>; starts expected at 1.420 mil increased to 1.567 mil, and Dec was revised from 1.608 mil to 1.626 mil that contributed to a decline of 3.6%. Permits expected at 1.453 mil increased to 1.551 mil, Dec also revised higher from 1.416 mil to 1.420 mil; permits increased 9.0%.<\/p>\n

More weakness outlooks for Germany today,<\/strong>\u00a0The Association of German Chambers of Industry and Commerce expects Germany’s GDP to grow just 0.7% in 2020 with no upturn in sight. Germany is the economic powerhouse in Europe, while the US outlook remains at 3.0% GDP this year, the rest of the globe is looking soft. The IMF is more positive, saying it sees a rebound in global growth this year, despite risks of a further spread of the coronavirus that has now killed 2,010 and infected 75,286 people around the world. Most of the virus still confined to China; China’s death toll hit 2,004; 74,185 confirmed cases.<\/p>\n

Later this afternoon\u00a0<\/strong>(2:00 pm ET), the FOMC minutes from the Jan meeting will be released.<\/p>\n

According to a Reuters\/Ipsos national poll released yesterday<\/strong>, Bloomberg has moved to second place among Democrats behind the front-runner Bernie Sanders. 25% of registered Democrats and independents said they would vote for Sanders, Bloomberg 17% of respondents, versus 13% for Biden; Buttigieg 11%, Warren 9%, Klobuchar 5%.<\/p>\n

Source: TBWS<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

Stock indexes opened a little better this morning,\u00a0and the interest rate sector unchanged from yesterday at 8:00 am ET this morning. Weekly MBA mortgage applications were a bit soft last week;\u00a0composite apps -6.4% from the prior week, purchase apps -3.0%, and refinance apps -8.0%. Yesterday though MBAs Builder Application Survey data for January 2020 shows […]<\/p>\n","protected":false},"author":2,"featured_media":9044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-8878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-intelliloan"],"_links":{"self":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/comments?post=8878"}],"version-history":[{"count":1,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8878\/revisions"}],"predecessor-version":[{"id":9057,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/posts\/8878\/revisions\/9057"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media\/9044"}],"wp:attachment":[{"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/media?parent=8878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/categories?post=8878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/intelliloan.com\/insights\/wp-json\/wp\/v2\/tags?post=8878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}