News You'll Use

Mortgage rates moved lower this week as we saw the Fed raise rates again this week by 25 basis points (bps). The data this week came in mixed, with JOLTS Job Openings coming in lower than expected is a move in the right direction for the Fed, while ADP Employment changes coming in higher than expected is not what the Fed was hoping to see in the labor market. The Fed did take out language guiding to expect a rate hike in June, although they did not say that they are expecting to pause, they are just data dependent at this point. We saw First Republic go into receivership and then quickly bought by JP Morgan. That news has market participants asking which Regional Bank is the next to fall, if the issues in the banks that have already failed are spreading. Fed Chairman Powell assured the markets that the U.S. banking sector is sound and stronger than it was in March. The markets and the Fed will be watching inflation, labor markets, and the U.S. Regional banks as it tries to figure out where the economy and rates are heading.

• U.S. 10-year Treasury closed at 3.37% on Thursday afternoon

• ISM Manufacturing came in higher than analyst's expectations (47.1 vs expectations of 46.8)

• JOLTS Job Openings came in lower than analyst's expectations (9.59 million job openings vs expectations of 9.736 million)

• Factory Orders came in higher than analyst's expectations (1.2% m/m vs expectations of 0.9% m/m)

• ADP Employment Changes came in higher than market expectations (296k vs expectations of 150k)

• ISM Services Index came in-line with market expectations (51.9 vs expectations of 51.8)

• Initial Jobless Claims came in above analyst's expectations (242k claims vs expectations of 240k claims)

• Mortgage Applications fell 1.2% this week