05/30/2017 - Weekly Market Update

What's going on and why does it matter?
Mortgage bonds opened flat today in a quiet start to this holiday-shortened trading week.  The Fed is scheduled to purchase a sizable $1.45 billion in 30-year conventional mortgage bonds today, so that may help to keep bond prices elevated.  It seems that mortgage bonds may continue to drift sideways in a range between their 30-day and 200-day moving averages.  The personal income report for April came out this morning in line with market expectations, although the PCE inflation numbers for April were elevated. Later this week the market will be digesting the all-important non-farm payrolls report.


What should you do about it?

 
Lock your rate to be safe, especially while mortgage bonds continue to trade near the top of their recent range.



MBS Chart

Economic reports that may impact mortgage rates this week:
Date
Report
Period
Prior
Estimate
Actual
Tue
30 May
Personal
Income
Apr
0.2%
0.4%
0.4%
Tue
30 May
Core PCE
Price Index
Apr
-0.1%
0.1%
0.2%
Tue
30 May
Consumer
Confidence
May
120.3
119.8
Thu
1 Jun
ADP National
Employment
May
177,000
180,000
Thu
1 Jun
Initial Jobless
Claims
Week of
May 22
234,000
238,000
Thu
1 Jun
Construction
Spending
Apr
-0.2%
0.5%
Thu
1 Jun
ISM
Mfg. PMI
May
54.8
54.6
Thu
1 Jun
Total
Vehicle Sales
May
16.88M
16.9M
Fri
2 Jun
Non-Farm
Payrolls
May
211,000
182,000
Fri
2 Jun
Average
Earnings
May
0.3%
0.2%


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