Wednesday, November 29, 2017


What's going on and why does it matter?

Mortgage bonds opened lower today and they are now trading below their 200-day moving average. Global stock markets improved overnight in light of progress made by Great Britain and the European Union on the Brexit negotiations, coupled with tax reform progress in the US.  The tax reform bill passed the Senate Banking Committee yesterday, with a vote expected by the full Senate on Thursday. Bond prices are also being pressured by a large supply of corporate bonds that are scheduled to hit the market today. The Fed's mortgage bond buying activity today is limited to $565 million of 15-year conventional mortgage bonds.

MBS Chart

 
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%

Thu 30 Nov
Personal Income
Oct
0.4%
0.3%

Thu 30 Nov
Core PCE Price Index
Oct
0.1%
0.2%

Thu 30 Nov
Initial Jobless Claims
Week of Nov 20
239k
240k

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



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