Market Movement - June 15,2020

Market Movement – June 15,2020

Market Movement
The Federal Open Market Committee (FOMC) voted to leave the benchmark interest rate unchanged this week, and mortgage rates trended lower. Small-business optimism is starting to improve as states and cities lift stay-at-home restrictions and move into recovery. Job openings declined in April, though the data lags by one month. Both new purchase and refinance mortgage application submissions increased. The consumer price index declined. Jobless claims are starting to decline. Consumer sentiment improved.
MORTGAGE RATES CURRENTLY TRENDING
Low
THIS WEEK’S POTENTIAL VOLATILITY
Neutral
Notable News

  • Could the pandemic delay Millennial homeownership even more? Read More >>
  • Home builders are winning the Covid-19 recovery race. Watch More >>
  • Survey: 38% of renters will need relief in the next 90 days. Read More >>
Market Recap

  • The National Federation of Independent Business (NFIB) small-business optimism index improved 3.5 points to a level of 94.4 in May, suggesting the Paycheck Protection Program (PPP) may be helping with revenue disruptions due to coronavirus-related closures.
  • In April, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) continued to reflect coronavirus-related job losses. Job openings fell to a level of 5.05 million. Layoffs and quits dropped significantly to 9.89 million in April, after March’s record 14.64 million. The hiring rate fell to record low of 2.7%.
  • New purchase mortgage application submissions increased 5.0% and refinance mortgage application submissions increased 11.0% for a composite 9.3% increase for the week ending 6/5. Last week’s survey marked the 8th straight week of new purchase increases.
  • The consumer price index fell 0.1% month-over-month but improved 0.1% year-over-year. Excluding more volatile gas and energy the index still declined 0.1% month-over-month and increased 1.2% year-over-year.
  • The Federal Reserve did not move interest rates at its meeting this week and signaled there will be no rate hikes until 2022. Based on Federal Reserve Chair Jerome Powell’s statement, the committee does not project achieving its long-term employment or inflation goals in the next three years.
  • Initial jobless claims fell to a level of 1.54 million for the week ending 6/6, signaling that workers are starting to return to work. Continuing claims are also down to a level of 18.9 million.
  • In June, consumer sentiment improved to a level of 78.9.
Information Chart
Market Forecast
This week’s important economic reports include:

  • Retail sales, retail sales ex-autos
  • Home builders’ index
  • MBA applications
  • Housing starts and building permits
  • Weekly jobless claims
Economic Calendar Outlook
WEEK OF JUNE 15, 2020
June 16th Thru 18th
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Claire Hassell

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