The Chicago PMI report came in this morning at 60, versus the expected 54.9.
What does this mean and how does it affect you?
While this report shows the overall economic activity in the Chicago area, it is also seen as being representative of the overall economy (employment, inflation, etc). More orders in the manufacturing and non-manufacturing sectors mean a larger workforce is needed to accommodate and fulfill them. Anything above 50% usually means the business sector is expanding, and that, of course, is good for the economy.
MBS is currently up 19 bps for the morning, so mortgage rates should hold where they’re at for now, but that’s not a guarantee. If I was in the middle of buying a home or refinancing, I would secure the terms at the moment and go about my day.
Always remember, as long as the rate meets your PAYMENT OBJECTIVE, its ALWAYS best to lock rather than gamble.
This afternoon the Treasury will be auctioning $32b of 7 year notes.
