Thursday, November 30, 2017

What's going on and why does it matter? Mortgage bonds opened flat today, although they are still hovering below their 200-day moving average. The economic data in recent days has been positive, although the inflation numbers have been tame.  The market's attention is focused on the progress of the Senate tax reform bill where a final vote is expected late tonight or early tomorrow. There is also an OPEC meeting today where major oil producers will discuss a potential nine-month extension in production cuts from March 2018 through December 2018.  The Fed is scheduled to purchase up to $1.51 billion of 30-year conventional mortgage bonds today. What should you do about it? Lock your rate to be safe. Economic reports that may impact mortgage rates this week: Date Report Period Prior Est. Actual Mon 27 Nov New Home Sales Oct 667k 625k 685k Tue 28 Nov Consumer Confidence Nov 125.9 124.0 129.5 Wed 29 Nov GDP 2nd Estimate Q3 2017 3.0% 3.2% 3.3% Wed 29 Nov Core PCE Prices Q3 2017 1.3% 1.4% 1.4% Wed 29 Nov Pending Home Sales Oct 0.0% 1.0% 3.5% Thu 30 Nov Personal Income Oct 0.4% 0.3% 0.4% Thu 30 Nov Core PCE Price Index Oct 0.1% 0.2% 0.2% Thu 30 Nov Initial Jobless Claims Week of Nov 20 239k 240k 238k Fri 1 Dec Construction Spending Oct 0.3% 0.5% Fri 1 Dec ISM Mfg. PMI Nov 58.7 58.4 Fri 1 Dec Total Vehicle Sales Nov 18.09M 17.5M