Tuesday, September 12, 2017

What's going on and why does it matter?

Mortgage bonds opened below their 30-day moving average today for the first time since July, and bond prices seem to be backing down from their lofty levels. Risk appetite is returning to the financial markets on easing concerns associated with Hurricane Irma and North Korea. This means that investors who were previously flocking to the safety of bonds are unwinding their bond holdings and jumping back into stocks. The Fed is scheduled to purchase up to $1.475 billion of GNMA mortgage bonds today, and they'll be back in the market tomorrow with a sizable purchase of 30-year conventional mortgages.

What should you do about it?

Lock your rate if bonds are unable to break back above their 30-day moving average because the next stop on the way down is their 100-day moving average.

   

Economic reports that may impact mortgage rates this week:
   

Date	Report	Period	Prior	Est.	Actual
Tue 12 Sep	JOLTS Job Openings	Jul	6.16M	-
Wed 13 Sep	PPI Final Demand	Aug	-0.1%	0.3%
Thu 14 Sep	Core CPI	Aug	0.1%	0.2%
Thu 14 Sep	Initial Jobless Claims	Week of Sep 4	298k	300k
Fri 15 Sep	NY Fed Mfg. Index	Sep	25.2	19.0
Fri 15 Sep	Retail Sales	Aug	0.6%	0.1%
Fri 15 Sep	Industrial Output	Aug	0.2%	0.1%
Fri 15 Sep	Capacity Utilization	Aug	76.7%	76.8%
Fri 15 Sep	Mfg. Output	Aug	-0.1%	0.3%
Fri 15 Sep	Business Inventories	Jul	0.5%	0.2%
Fri 15 Sep	U of Mich. Consumer Sentiment	Sep	96.8	95.1