What's going on and why does it matter?
This holiday-shortened trading week will be a busy one for the bond
market. There are several key economic reports scheduled for later in the
week, the Fed minutes from last month's meeting are scheduled to be
released on Wednesday, there will be a flurry of speeches from Fed
policymakers throughout the week, and third-quarter earnings reports will
likely impact the stock market and may cause repercussions in the bond
market. Of course, there are also some geopolitical events for the market
to digest, including ongoing tensions between the US and North Korea and
escalating political infighting in Washington. There is also the
possibility that Catalonia may decide to announce it's independence
from Spain, which could impact the European markets and have a ripple
effect here in the US. As for today, there are a few Fed
policymakers who are scheduled to give speeches, and the Fed will be
purchasing up to $500 million of 15-year conventional mortgages.
What should you do about it? Watch for mortgage bonds to continue trading in a range between
their 100-day and 200-day moving averages, but be prepared to lock
your rate quickly if bond prices start sliding back down.
Economic reports that may
impact mortgage rates this week: