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Bond Market Update

Market Update

Friday, February 23, 2018

What's going on and why does it matter?

Mortgage bonds opened higher this morning as the financial markets are starting to become concerned with the upcoming election in Italy that may result in a hung Parliament.  This could cause some volatility in European financial markets, which is driving investors toward the safety of US and German bonds.  In other news, the Fed is going to be a big buyer of mortgage bonds during these last few days of the month. In fact, Fed is scheduled to purchase up to $1.015 billion of 30-year conventional mortgage bonds today, which may help.

What should you do about it?
Watch for mortgage bonds to improve. However, be prepared to lock your rate if bonds fall back below their 10-day moving average, which has been operating as a stiff ceiling of technical resistance since early January.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Wed 21 Feb Existing Home Sales Jan 5.57M 5.6M 5.3M
Wed 21 Feb Fed Minutes Jan - - -
Thu 22 Feb Initial Jobless Claims Week of Feb 12 230k 230k 222k

Matt Chao

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

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