ISM Index (Institute for Supply Management)
Unlike many Mondays, we did get some relevant economic data this morning and it was a fairly big release. The Institute for Supply Management (ISM) posted their manufacturing index at 10:00 AM ET this morning, announcing a reading of 43.1. This was an increase from April’s 41.5 that was the lowest since April 2009 and shows that manufacturing activity improved a little in May. We shouldn’t be surprised by the increase though, considering states and businesses were starting to reopen during the month. And the index is still well below the 50.0 threshold that is considered the benchmark for growth or contraction in the sector. In other words, while there was an improvement in sentiment, it still shows serious weakness overall. Therefore, we can consider the data neutral to slightly favorable for mortgage rates.