{"id":3142,"date":"2021-07-09T06:00:00","date_gmt":"2021-07-09T06:00:00","guid":{"rendered":"https:\/\/www.mbsquoteline.com\/home\/?p=3142"},"modified":"2022-04-02T14:37:05","modified_gmt":"2022-04-02T14:37:05","slug":"service-sector-witnesses-fantastic-expansion-while-mortgage-rates-go-down","status":"publish","type":"post","link":"https:\/\/staging2.mbsquoteline.com\/home\/2021\/07\/09\/service-sector-witnesses-fantastic-expansion-while-mortgage-rates-go-down\/","title":{"rendered":"Service Sector Witnesses Fantastic Expansion While Rates Go Down"},"content":{"rendered":"\n

The service sector witnesses fantastic expansion while mortgage rates go down. Weekly economic news came out favorable for mortgage markets.<\/p>\n\n\n\n

Investors worry about the spreading COVID-19 slowing global growth. Also, the start of the third quarter contained talks of portfolio rebalancing. As a result, the portfolio rebalancing increased bond demand.<\/p>\n\n\n\n

Overall, economic data appeared a bit weaker than expected. Ultimately, mortgage rates ended the week lower.<\/p>\n\n\n\n

Service Sector Witnesses Fantastic Expansion<\/h2>\n\n\n\n

First, we discuss the most significant economic report released this week. Continually, the service sector witnesses fantastic expansion. The Institute of Supply Management\u2019s (ISM) national service sector index indicated as much.<\/p>\n\n\n\n

This national service sector index fell to 60.1. This result dropped well below the consensus forecast of 63.5. However, the national service sector index still maintains a very high level by historical standards.<\/p>\n\n\n\n

Readings above 50 indicate that the economy is expanding. Many companies continue to experience difficulties in hiring enough workers. This problem makes it difficult to keep up with growth.<\/p>\n\n\n\n

\"Service<\/a><\/figure><\/div>\n\n\n\n

Divided Strategies for Mortgage-Backed Securities<\/h2>\n\n\n\n

While the service sector witnesses fantastic expansion, Fed officials do not believe that it is time to tighten monetary policy. Analysts drew this conclusion from the June 16th<\/sup> Fed meeting. Overall, Fed officials feel that they haven\u2019t made enough progress toward their employment and inflation goals.<\/p>\n\n\n\n

The minutes also noted that the Fed intends to “provide notice well in advance<\/a>” of an announcement to reduce bond purchases. Officials felt divided on their strategies for mortgage-backed securities. On one hand, Fed officials debated whether they should scale back mortgage-backed securities (MBS) and Treasuries in equal proportions. On the other hand, some felt that the Fed should reduce MBS by a greater amount.<\/p>\n\n\n\n

Looking Ahead After the Service Sector Witnesses Fantastic Expansion<\/h2>\n\n\n\n

Looking ahead after the service sector witnesses fantastic expansion, investors closely monitor global COVID-19 case counts. In addition, investors look for hints from Fed officials about the timing for changes in monetary policy.<\/p>\n\n\n\n

Beyond that, the Consumer Price Index (CPI) comes out on Tuesday. Analysts widely follow the monthly CPI inflation report. It examines the price change for goods and services.<\/p>\n\n\n\n

Later in the week, Retail Sales releases on Friday. Consumer spending accounts for over two-thirds of U.S. economic activity. Because of this the retail sales data indicates growth<\/p>\n\n\n\n

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Want to see how mortgage-backed securities are affected as the service sector witnesses fantastic expansion? Never miss an update with MBSQuoteline. To receive by-the-minute updates on mortgage-backed securities, try our platform free for 14 days.<\/strong><\/a><\/p>\n\n\n\n

\"Service<\/a><\/figure><\/div>\n\n\n\n

Stay connected with MBSQuoteline on social media by following us on Facebook<\/a> and LinkedIn<\/a>.<\/p>\n\n\n\n

All material Copyright \u00a9 Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission. To learn more about the MortgageTime\u2122 newsletter, please contact MBSQuoteline at 800.627.1077<\/a> or info@mbsquoteline.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The service sector witnesses fantastic expansion while mortgage rates go down. Weekly economic news came out favorable for mortgage markets.<\/p>\n","protected":false},"author":9,"featured_media":3149,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[426],"tags":[81,73,427,33,441,448],"class_list":["post-3142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgagetime","tag-consumer-price-index","tag-ism-services-index","tag-manufacturing","tag-mbs","tag-mortgage-backed-securities-2","tag-retail-sales"],"_links":{"self":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/3142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/comments?post=3142"}],"version-history":[{"count":8,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/3142\/revisions"}],"predecessor-version":[{"id":4143,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/3142\/revisions\/4143"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media\/3149"}],"wp:attachment":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media?parent=3142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/categories?post=3142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/tags?post=3142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}