Tuesday, October 17, 2017


What's going on and why does it matter?

Mortgage bonds are still trading below their 100-day moving average as stock prices continue to trade at record highs. Favorable earnings reports and the rally in the stock market seems to be putting a damper on bond prices. It's likely that this trend will continue in the absence of any major risk events that may change market sentiment. The Fed is scheduled to purchase up to $1.085 billion of GNMA mortgage bonds today, and their support of the mortgage market will be somewhat limited for the remainder of the week.

What should you do about it?

It's probably a good idea to lock your rate while mortgage bonds remain near the top of their recent range.

.....
MBS Chart

.....
Economic reports that may impact mortgage rates this week:
Date
Report
Period
Prior
Est.
Actual
Mon
16 Oct
NY Fed
Mfg. Index
Oct
24.4
20.7
30.2
Tue
17 Oct
Industrial
Production
Sep
-0.9%
0.3%

Tue
17 Oct
Capacity
Utilization
Sep
76.1%
76.2%

Tue
17 Oct
Manuf.
Output
Sep
-0.3%
0.1%

Wed
18 Oct
Building
Permits
Sep
1.272M
1.25M

Wed
18 Oct
Housing
Starts
Sep
1.18M
1.175M

Thu
19 Oct
Initial Jobless
Claims
Week of
Oct 9
243k
240k

Fri
20 Oct
Existing
Home Sales
Sep
5.35M
5.30M