Updated on December 1, 2023 10:08:12 AM EST
November’s manufacturing index from the Institute for Supply Management (ISM) was posted at 10:00 AM ET this morning. It revealed a reading of 46.7, matching October’s number. Analysts were expecting to see an increase that would have meant surveyed manufacturing executives felt business had improved during the month. While a flat reading is more or less neutral for bonds theoretically, the fact we didn’t see an increase is allowing traders to treat the news as favorable for bonds and mortgage rates.
Also worth noting is that Fed Chairman Powell will be participating in a discussion with the President of Spelman College in Atlanta at 11:00 AM ET and again in a roundtable at 2:00 PM ET. If there are any surprises to come out of these events, we could see a reaction in bonds that affects mortgage rates noticeably.
Next week is another that is packed with economic releases and other events that may influence mortgage rates. It starts with October’s Factory Orders report Monday morning and closes Friday with two reports, one being the almighty monthly Employment report. There is plenty scheduled that we will be watching next week. Look for details on all of it in Sunday evening’s weekly preview.
©Mortgage Commentary 2023