Updated on May 21, 2019 10:32:39 AM EDT
The National Association of Realtors announced late this morning that home resales slipped 0.4% last month. This was weaker than the small increase that was expected, indicating the housing sector remains softer than analysts thought. That makes the data good news for bonds and mortgage rates. Unfortunately, this is considered to be only a moderately important report, preventing a more noticeable reaction to the results.
Tomorrow’s only relevant event is the afternoon release of the minutes from the last FOMC meeting. Market participants will be looking for how Fed members voted during the last meeting and any comments about inflation concerns or economic growth. The goal is to form opinions about the Feds next move regarding interest rates. There is much debate in the markets whether or not the Fed will adjust key short-term rates. Since the minutes will be released at 2:00 PM ET, if there is a market reaction to them it will be evident during mid-afternoon trading tomorrow.
©Mortgage Commentary 2019