Tuesday, September 12, 2017

What's going on and why does it matter?

Mortgage bonds opened below their 30-day moving average today for the first time since July, and bond prices seem to be backing down from their lofty levels. Risk appetite is returning to the financial markets on easing concerns associated with Hurricane Irma and North Korea. This means that investors who were previously flocking to the safety of bonds are unwinding their bond holdings and jumping back into stocks. The Fed is scheduled to purchase up to $1.475 billion of GNMA mortgage bonds today, and they'll be back in the market tomorrow with a sizable purchase of 30-year conventional mortgages.

What should you do about it?


Lock your rate if bonds are unable to break back above their 30-day moving average because the next stop on the way down is their 100-day moving average.

   
MBS Chart
Economic reports that may impact mortgage rates this week:
   
Date
Report
Period
Prior
Est.
Actual
Tue
12 Sep
JOLTS Job
Openings
Jul
6.16M
-
 
Wed
13 Sep
PPI Final
Demand
Aug
-0.1%
0.3%
 
Thu
14 Sep
Core CPI
Aug
0.1%
0.2%
 
Thu
14 Sep
Initial Jobless
Claims
Week of
Sep 4
298k
300k
 
Fri
15 Sep
NY Fed
Mfg. Index
Sep
25.2
19.0
 
Fri
15 Sep
Retail
Sales
Aug
0.6%
0.1%
 
Fri
15 Sep
Industrial
Output
Aug
0.2%
0.1%
 
Fri
15 Sep
Capacity
Utilization
Aug
76.7%
76.8%
 
Fri
15 Sep
Mfg. Output
Aug
-0.1%
0.3%
 
Fri
15 Sep
Business
Inventories
Jul
0.5%
0.2%
 
Fri
15 Sep
U of Mich.
Consumer
Sentiment
Sep
96.8
95.1
 

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