As if waiting to see whether or not our elected officials in Congress can agree on a plan addressing our debt issues, we have several economic indicators scheduled to be released this week that have historically impacted the direction of mortgage interest rates. The DOW started off very positive (up 139) anticipating a deal had been reached, only to dramatically tank when the lowest ISM Manufacturing figures in two years were released this morning. The market has been very volatile and remember, “typically” when the stock market is tanking, mortgage rates tend to improve as investors will trade stocks for the safety of bonds (like mortgage backed securities). The reverse is also true.
Here are some of the economic indicators that are scheduled to be released this week:
Monday, August 1: ISM Index
Tuesday, August 2: Personal Consumption Expenditures and Core PCE
Wednesday, August 3: ADP National Employment Report and ISM Services Index
Thursday, August 4: Initial Jobless Claims
Friday, August 5: THE JOBS REPORT