Updated on September 19, 2019 10:24:53 AM EDT
The National Association of Realtors gave us their Existing Home Sales report for August at 10:00 AM ET this morning. It showed that home resales rose 1.3% last month, reaching their highest level in almost a year and a half. The increase was stronger than forecasts that were calling of a modest decline in sales. Because a strengthening housing sector makes broader economic growth more likely, we should consider this data to be bad news for bonds and mortgage rates.
Today’s other release and the final report of the week was August’s Leading Economic Indicators (LEI), also at 10:00 AM ET. The Conference Board announced no change from July’s level, falling just short of the 0.1% increase that was expected. Because these indicators attempt to predict economic activity over the next several months, the softer reading is favorable news for mortgage pricing.
Tomorrow has nothing scheduled that is expected to affect mortgage rates except for a couple of speaking engagements by current Fed members throughout the day. These events can affect the markets if something unexpected is said about the economy or the Fed’s monetary policy plans but often are non-factors.
©Mortgage Commentary 2019