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Bond Market Update

Market Update

Friday, April 20, 2018

What's going on and why does it matter?
Mortgage bonds are still hovering near their worst levels of the year, but they did recover somewhat from the worst levels of yesterday's trading range. The risk of inflation is still a concern, although oil prices have calmed down a little after President Trump tweeted that higher oil prices were not acceptable. There are no major economic reports scheduled for release today. Two Fed policymakers will be giving speeches later this morning, and the Fed is scheduled to purchase up to $670 million of 30-year conventional mortgage bonds today.

What should you do about it?
Watch for mortgage bonds to rebound from these levels, but be prepared to lock your rate quickly if bonds resume their downward slide.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Mon 16 Apr NY Fed Mfg Index Apr 22.50 18.80 15.80
Mon 16 Apr Retail Sales Mar -0.1% 0.4% 0.6%
Mon 16 Apr Business Inventories Feb 0.6% 0.6% 0.6%
Tue 17 Apr Building Permits Mar 1.321M 1.323M 1.354M
Tue 17 Apr Housing Starts Mar 1.236M 1.262M 1.319M
Tue 17 Apr Industrial Production Mar 0.9% 0.4% 0.5%
Tue 17 Apr Capacity Utilization Mar 77.7% 77.9% 78.0%
Thu 19 Apr Initial Jobless Claims Week of Apr 9 233k 230k 232k

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