Updated on June 15, 2018 10:22:21 AM EDT
Mays Industrial Production data was posted at 9:15 AM ET this morning. It showed a 0.1% decline in output at U.S. factories, mines and utilities last month. This was weaker than forecasts of a 0.2% increase and hints at softer manufacturing activity. Since the report showed a weaker number than expected, we can consider the data favorable for bonds and mortgage rates.
The final release of the week was Junes preliminary reading to the University of Michigans Index of Consumer Sentiment at 10:00 AM ET. It came in at 99.3, up from May’s final reading of 98.0 and higher than the predicted 98.8. The increase means more surveyed consumers felt better about their own financial and employment situations than did last month. That is bad news for bonds and mortgage rates because rising confidence usually translates into stronger levels of consumer spending that fuels economic growth.
Next week has little scheduled that is expected to affect mortgage rates. There are a couple of housing-related economic reports mid-week but not much more than that. Monday has nothing set, so we can expect weekend news or stock movement to be the biggest influence on mortgage rates as the week starts. Look for details on next week’s calendar in Sunday evening’s weekly preview.
©Mortgage Commentary 2018