Mortgage rates rose early last week, then fell throughout the rest of the week, as uncertainty surrounding the French Presidential elections caused investors to seek security. By the end of the week, mortgages had settled in near where they started the week, with very little rate movement on Friday.
The first round of the French elections are behind us and the French have narrowed their candidates down to Emmanuel Marcon and Marine LePen. A May 7th LePen victory could result in a French departure from the Euro (a “Frexit”), however with polls showing Marcon with a solid lead, the security of mortgages may be losing some of its appeal. Turning to the domestic agenda, the week starts out slowly with little on the economic calendar early in the week. On Thursday, we receive several significant pieces of economic data including, Wholesale Inventories, Durable Goods Orders, and Initial Jobless Claims. It should be noted that President Trump’s administration has indicated that it will unveil its tax plan late this week. As far as Fed speakers go, the week is light with Kashkari speaking Monday and Harker speaking Friday.
Economic Calendar for the week of 04/24/2017 to 03/29/2017:
Monday: Chicago Fed National Activity Change and Dallas Fed Manufacturing Activity
Tuesday: FHFA House Price Index (MoM), and S&P CoreLogic Case Schiller 20-City, New Home Sales
Wednesday: MBA Mortgage Applications, Retail Sales (Revisions)
Thursday: Wholesale Inventories, Retail Inventories, Durable Goods Orders, Initial Jobless Claims, Continuing Jobless Claims, Bloomberg Consumer Comfort Index, Pending Home Sales and Kansas City Fed Manufacturing Activity
CDP, Personal Consumption, GDP Price Index, Core PCE (QoQ), Chicago Purchasing Manager and University of Michigan Sentiment