Financial markets are back in full swing after taking a small holiday break
last week. The economic calendar kicks off later this morning
with the new home sales numbers for October. The market will be digesting
several high-tiered economic reports this week, including the consumer
confidence numbers tomorrow, and third quarter GDP and Core PCE data on
Wednesday. The market will also be paying very close attention to events
out of Washington as the tax reform bill advances through the Senate. Later
this week, Fed Chair Yellen is scheduled to give Congressional testimony on
the Fed's monetary policy. The Fed is scheduled to purchase up to $1.28
billion of GNMA mortgage bonds today.
What should you do
Watch for mortgage bonds to bounce higher off their 200-day moving
average, but be prepared to lock your rate quickly if mortgage bonds fall
back below that critical level.
Economic reports that may
impact mortgage rates this week: