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Bond Market Update

Market Update

Thursday, July 27, 2017

What's going on and why does it matter?

Mortgage bonds rallied yesterday after the Fed acknowledged in their monetary policy statement that inflation has indeed been much weaker than previously thought.  It will be interesting to see if the rebound in mortgage pricing will continue today, being that bond prices are hovering near their 30-day and 200-day moving averages.  The Fed is very supportive of the mortgage market today as they are scheduled to purchase a very sizable $2.675 billion of GNMA and 30-year conventional mortgage bonds.

What should you do about it?
Watch for mortgage bonds to remain above their 200-day moving average, but be prepared to lock your rate quickly if bonds fall back below that critical level.


Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Estimate Actual
Mon
24 Jul
Existing
Home Sales
June 5.62M 5.58M  5.52M
Tue
25 Jul
Consumer
Confidence
July 118.9 116.5 121.1
Wed
26 Jul
New
Home Sales
June 610,000 620,000 610,000
Wed
26 Jul
Fed Funds
Rate
July 1.25% 1.25% 1.25%
Thu
27 Jul
Durable
Goods Orders
June -0.1% 3.0% 6.5%
Thu
27 Jul
Initial Jobless
Claims
Week of
July 17
234,000 241,000 244,000
Fri
28 Jul
U of Mich.
Consumer
Sentiment
July 95.1 93.1  
Fri
28 Jul
GDP
first estimate
Q2
2017
0.7% 2.6%  
Fri
28 Jul
Core PCE
Prices
Q2
2017
2.0% 0.8%  

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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