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Bond Market Update

Market Update

Wednesday, November 21, 2018

What's going on and why does it matter?
Mortgage bonds appear to be drifting sideways after failing to break above a technical ceiling of resistance in yesterday's trading session. Meanwhile, stock prices appear to be headed for a rebound, which may put some selling pressure on bonds today. The market is digesting several economic reports today, including the durable goods report, which came out this morning much weaker than market expectations. Later this morning, we'll see the existing home sale numbers for October, as well as the University of Michigan Consumer Sentiment Index. The market is closed tomorrow for Thanksgiving, and there will only be a half-day of trading on Friday.

What should you do about it?
Watch and see if mortgage bonds can remain in positive territory above their 30-day moving average, but be prepared to lock your rate if mortgage bonds fall below that level.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 20 Nov Building Permits Oct 1.270M 1.269M 1.263M
Tue 20 Nov Housing Starts Oct 1.201M 1.225M 1.228M
Wed 21 Nov Durable Goods Orders Oct 0.7% -2.5% -4.4%
Wed 21 Nov Initial Jobless Claims Week of Nov 12 216k 215k 224k
Wed 21 Nov Existing Home Sales Oct 5.15M 5.20M  
Wed 21 Nov U of M Consumer Sent. Nov 98.3 98.3%  

Matt Chao

Matt Chao
NMLS: 1428557
VIP Independend Mortgage, Inc.
Corporate NMLS: 145502

(858) 216-2368
3919 30th St, Suite 7
San Diego, California 92104