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Bond Market Update

Market Update

Thursday, June 22, 2017

What's going on and why does it matter?

Mortgage bonds are continuing to drift sideways in the absence of market-moving news. Bond prices are still trading at an important crossroad as their 10-day, 30-day, and 200-day moving averages converge. It will be interesting to see if bond prices can break above this critical level, or if they'll get turned down.  The Fed is scheduled to purchase a modest $950 million of GNMA mortgage bonds today, and they won't be buying any mortgage bonds tomorrow. The initial jobless claims numbers came out this morning in line with market expectations, and there is only one Fed policymaker who is scheduled to give a speech today.

What should you do about it?
Watch and see if mortgage bonds can break out of this narrow trading range, but be prepared to lock your rate quickly if bond prices start heading south.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Estimate Actual
21 Jun
Home Sales
May 5.56M 5.55M 5.62M
22 Jun
Initial Jobless
Week of
June 12
237,000 240,000 241,000
23 Jun
Home Sales
May 570,000 600,000  

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