Tuesday, July 11, 2017

What's going on and why does it matter?

Mortgage bond prices opened lower today as the 100-day moving average has been operating as a formidable ceiling of technical resistance. Bond prices failed to rally above that critical level yesterday in spite of heavy purchases by the Federal Reserve.  The Fed is scheduled to purchase up to $1.05 billion of GNMA mortgage bonds today, but they won't be buying any mortgage bonds tomorrow due to Fed Chair Yellen's scheduled testimony before Congress. Although most of this week's economic reports are slated for Thursday and Friday, we can have the JOLTS report and the wholesale sales numbers scheduled for release later this morning.

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.

MBS Chart

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Economic reports that may impact mortgage rates this week:

DateReportPeriodPriorEstimateActual
Tue
11 Jul
JOLTS Job
Openings
May6.04M5.95M
Tue
11 Jul
Wholesale
Inventory
May-0.5%0.3%
Tue
11 Jul
Wholesale
Sales
May-0.4%0.2%
Thu
13 Jul
Initial Jobless
Claims
Week of
July 3
248,000245,000
Thu
13 Jul
PPIJune0.0%0.0%
Fri
14 Jul
Core CPIJune0.1%0.2%
Fri
14 Jul
Real Weekly
Earnings
June0.3%0.0%
Fri
14 Jul
Retail
Sales
June-0.3%0.1%
Fri
14 Jul
Industrial
Production
June0.0%0.3%
Fri
14 Jul
Capacity
Utilization
June76.6%76.7%
Fri
14 Jul
Mfg. OutputJune-0.4%0.2%
Fri
14 Jul
Business
Inventories
May-0.2%0.3%
Fri
14 Jul
U of Mich.
Consumer
Sentiment
July94.595.0

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