Surprise ISM Report Causes Rates to Drop

The bond market is up after unexpected data from the ISM report. The stock market is also strongly down in reaction to this report and rates should improve by at least .25 to the price today. The ISM Services index posted an unexpected 10 point drop, which equates to a 20% decline month over month. At a level of 44.6 it is considered evidence of a recession. This typically non-influential report was not on the radar for review, and usually has no impact on interest rates. Tomorrow we'll get Productivity and Costs data for Q4, which could cause interest rate volatility if production is shown to vary from expected levels.

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Choppy Waters for Mortgage Rates

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