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Bond Market Update

Market Update

Wednesday, March 22, 2017

What's going on and why does it matter?
Mortgage bonds rallied yesterday and are now trading in positive territory above their 30-day moving average.  In fact, mortgage bond prices seem poised to test their 100-day moving average, which is within reach for the first time in several months. Bond prices are benefiting and stock prices are declining from a reversal of the "Trump trade." The market seems to be re-aligning its expectations to be later vs. sooner as to when Mr. Trump's proposed tax reform and economic stimulus programs may take effect.  The Fed is scheduled to purchase up to $1.15 billion in 30-year conventional mortgage bonds today, which may help to propel bond prices higher.

What should you do about it?
Watch for bond prices to move higher and test their 100-day moving average. Be prepared to lock quickly if the market changes directions.


Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Estimate Actual
Wed
22 Mar
Existing
Home Sales
Feb 5.69M 5.57M  5.48M
Thu
23 Mar
Initial Jobless
Claims
Week of
Mar 13
241,000 240,000  
Thu
23 Mar
New
Home Sales
Feb 560,000 570,000  
Fri
24 Mar
Durable
Goods
Feb +1.8% +1.2%  

Matt Chao

Matt Chao
NMLS Number: 1428557
VIP Independend Mortgage, Inc.
Corporate NMLS Number: 145502
matt.chao@vipmtginc.com
http://mattchao.vipmtginc.com
(858) 216-2368
3919 30th St, Suite 7
San Diego, California 92104

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