Economic data is among the couple of consistent sources of motivation for rates of interest in the mortgage world and beyond. In basic, more powerful data tends to push rates higher and vice versa. But in today’s case, that correlation didn’t pan out.
The first of today’s 2 important financial reports was ADP Employment. It was just hardly more powerful than expected, so it’s not a surprise that rates didn’t react. The 2nd report (ISM Solutions) was a fair bit more powerful, with the headline index striking its finest levels since 2022.
On a huge majority of other celebrations, such a result would develop some clear upward pressure for rates. We can only speculate regarding the absence of a response this time. Perhaps it was the component that tracks inflation falling to the most affordable level in almost a year. Maybe the marketplace is more preoccupied with geopolitical considerations.
No matter the reasons, we’re not disturbed with the outcome. Rates moved about halfway back down to their recent lows after investing a couple of days at 2 week highs to begin the week.