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Bond Market Update

Market Update

Friday, July 20, 2018

What's going on and why does it matter?
Mortgage bonds opened lower this morning as they give back some of yesterday's gains. The economic calendar is empty today so it should be a relatively quiet day in the financial markets. The one thing that may impact the market today is that news headlines have been quite active regarding President Trump. The US dollar dipped from its one-year high relative to other currencies after he expressed concern for a stronger dollar, and trade war worries are being fueled by his recent threat to place tariffs on up to $500 billion in China imports. The Fed won't be buying any mortgage bonds today due to summer vacations, but they'll be back in the market on Monday buying up to $675 million of 30-year conventional mortgage bonds.

What should you do about it?
Watch and see if mortgage bonds can remain in positive territory above their 100-day moving average, but be prepared to lock your rate if bond prices fall back below that level.


Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Mon 16 Jul NY Fed Mfg Index Jul 25.0 22.0 22.6
Mon 16 Jul Retail Sales June 0.8% 0.5% 0.5%
Mon 16 Jul Business Inventories May 0.3% 0.4% 0.4%
Tue 17 Jul Industrial Production June -0.1% 0.6% 0.6%
Tue 17 Jul Capacity Utilization June 77.9% 78.3% 78.0%
Wed 18 Jul Building Permits June 1.301M 1.330M 1.273M
Wed 18 Jul Housing Starts June 1.350M 1.320M 1.173M
Thu 19 Jul Initial Jobless Claims Week of July 9 214k 220k 207k

Matt Chao

Matt Chao
NMLS: 1428557
VIP Independend Mortgage, Inc.
Corporate NMLS: 145502
matt.chao@vipmtginc.com

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

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