The latest economic data highlights the persistence of high inflation and a tight labor market, which has implications for June MBS (mortgage-backed securities).
In a week marked by a lack of significant economic developments, housing starts surged as mortgage markets experienced a period of calm.
As the Fed paused rate hikes, mortgage markets experienced a volatile week, concluding the with a slight increase.
Notably, this week's biggest economic story revolved around weakness in the services sector, revealed by the Institute of Supply Management.
After a notable rise in the initial weeks of May, mortgage rates declined amid mixed economic signals and manufacturing contraction.
Amid growing concerns about the impact of high inflation, investors shifted their focus to the banking sector troubles and debt ceiling.
As the week comes to a close, mortgage rates reached March 2023 levels as investors shifted their focus away from banking.
After a muddling 2022, refinance applications soared 10% week-over-week. This showed signs of life in the mortgage industry.
Alongside a wide range of major economic news, another Fed rate hike created a volatile week for mortgage markets.