Monday, May 15, 2017
What's going on and why does it matter?
Mortgage pricing improved on Friday as weaker than expected retail sales and consumer inflation triggered a rebound in mortgage bond prices. But it seems like bonds may be getting ready to give back some of Friday's gains because they opened lower this morning.
Even so, the NY Fed Manufacturing Index came out this morning much weaker than market expectations, so this may trigger another market reaction and cause mortgage pricing to improve further. If this happens, it will be interesting to see if the 30-day moving average will operate as a technical level of resistance.
The Fed's mortgage bond buying activity today is limited to $525 million of 15-year conventional mortgage bonds.
What should you do about it?
Lock in the gains from Friday's rally before mortgage bonds give back some ground. Otherwise, watch for bond prices to drift sideways as they bounce around between their 30-day and 100-day moving averages.
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Economic reports that may impact mortgage rates this week:
Date
|
Report
|
Period
|
Prior
|
Estimate
|
Actual
|
Mon
15 May
|
NY Fed
Mfg. Index
|
May
|
5.2
|
7.0
|
-1.0
|
Tue
16 May
|
Building
Permits
|
Apr
|
1.26M
|
1.27M
|
|
Tue
16 May
|
Housing
Starts
|
Apr
|
1.22M
|
1.26M
|
|
Tue
16 May
|
Industrial
Production
|
Apr
|
0.5%
|
0.3%
|
|
Tue
16 May
|
Capacity
Utilization
|
Apr
|
76.1%
|
76.3%
|
|
Tue
16 May
|
Mfg. Output
|
Apr
|
-0.4%
|
0.3%
|
|
Thu
18 May
|
Initial Jobless
Claims
|
Week of
May 8
|
236,000
|
240,000
|
|
|
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