What's going on and why does it
matter? End-of-Trading-Day Update
Bonds finished the week in the red with mortgage bond
prices tailing 3 bps and the benchmark yield pushing up against the key
technical ceiling of 2.40%. Next week, markets will open with a reaction to
G-20 news. Then Friday, we will see a deluge of data including CPI, retail
sales, industrial production, capacity utilization, and University of Michigan
data. Have a great weekend and be prepared for headlines out of Hamburg to
drive rates on Monday morning.
9am - The non-farm payrolls report came out this morning stronger than market
expectations, although the wage component of the report showed slower than
expected growth in wages. The continued strength in the jobs market
is likely to keep mortgage bond prices firmly below their critical 100-day
moving average, which means that mortgage pricing may continue to
deteriorate. The market will also get a sneak preview into Fed Chair
Yellen's semi-annual testimony to Congress next week with the early release
today of the Fed's Semiannual Monetary Policy Report. The Fed is
scheduled to purchase up to $1.05 billion of GNMA mortgage bonds today.
What should you do about it? Lock your rate to be safe, especially while mortgage bonds
continue to trade below their 100-day moving average.
] Economic reports that
may impact mortgage rates this week: