• © 2017 CMPS Institute. All Rights Reserved.

Bond Market Update

Market Update

Wednesday, March 1, 2017

What's going on and why does it matter?
Mortgage bonds are selling off this morning as odds of a Fed rate hike this month skyrocket to 70%.  A handful of Federal Reserve policy makers made some speeches yesterday that were seen as a coordinated effort to re-align market expectations for a Fed rate hike in March. Meanwhile, President Trump's speech last night rekindled market expectations for increased economic stimulus spending, which is causing bond prices to decline and stock prices to rally.  In economic news this morning, the personal income and PCE inflation reports for January came out hotter than expected, which is renewing inflation-related fears.  All of this seems like a perfect storm that is likely to cause mortgage pricing to get considerably worse.  The Fed's mortgage bond buying activity today is limited to $1.325 billion in GNMA mortgage bonds.

What should you do about it?
Lock your rate to be safe.


Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Estimate Actual
Mon
27 Feb
Durable
Goods
Jan -0.4% +1.7% +1.8%
Mon
27 Feb
Pending
Home Sales
Jan +1.6% +0.8% -2.8% 
Tue
28 Feb
GDP Q4
2016
+3.2% +2.1% +1.9%
Tue
28 Feb
Core
PCE Prices
Q4
2016
+1.7% +1.3% +1.2%
Tue
28 Feb
Chicago
PMI
Feb 50.3 53.0  57.4
Tue
28 Feb
Consumer
Confidence
Feb 111.8 111.0 114.8
Wed
1 Mar
Personal
Income
Jan +0.3% +0.3% +0.4%
Wed
1 Mar
Core PCE
Price Index
Jan +0.1% +0.2% +0.3%
Wed
1 Mar
Construction
Spending
Jan -0.2% +0.6%  -1.0%
Wed
1 Mar
ISM
Mfg. PMI
Feb 56.0 56.0  57.7
Wed
1 Mar
Total
Vehicle Sales
Feb 17.61M 17.7M  
Thu
2 Mar
Initial Jobless
Claims
Week of
Feb 20
244,000 245,000  
Fri
3 Mar
ISM
Non-Mfg PMI
Feb 56.5 56.5  

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

logo