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Bond Market Update

Market Update

Wednesday, May 23, 2018

What's going on and why does it matter?
Mortgage bonds opened higher this morning as financial market investors shift their trading positions to the safety of bonds. This "flight to quality" was triggered by President Trump's comments last night that he was "not satisfied" with the US-China trade discussions, that the current track of negotiations appeared "too hard to get done," and that any possible deal needed "a different structure." There are also trade tensions between the US and EU as a deal regarding tariffs has not been reached while the temporary exemption is set to expire next week. The Fed's mortgage bond buying activity today is limited to $155 million of 15-year conventional mortgages.

What should you do about it?
Watch for mortgage bonds to rally toward their 30-day moving average, but be prepared to lock your rate quickly if mortgage bonds fall back below their 10-day moving average.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Wed 23 May New Home Sales Apr 694k 679k  
Thu 24 May Initial Jobless Claims Week of May 14 222k 220k  
Thu 24 May Existing Home Sales Apr 5.60M 5.57M  
Fri 25 May Durable Goods Apr 2.6% -1.4%  
Fri 25 May U of Mich Consumer Sent. May 98.8 98.8  

Pegah Bozorgnia CMPS

Pegah Bozorgnia CMPS
NMLS Number: 910362
Apex Home Loans, Inc.
Corporate NMLS: 2884
(301) 471-8487
3204 Tower Oaks Blvd., Suite 400
Rockville, Maryland 20852


Apex Home Loans, Inc. NMLS #2884. For more information, please reference the NMLS Consumer Access Website at http://nmlsconsumeraccess.org. Licensed by: DE as a Lender by the Office of the State Bank Commissioner (011603); DC as a Dual Authority Mortgage Lender by the Department of Insurance, Securities and Banking (MLB2884); FL as a Mortgage Lender by the FL Office of Financial Regulation (MLD1088); MD as a Mortgage Lender by the Dept. of Labor, Licensing & Regulation (06-4989); N.J. Department of Banking and Insurance (2884); PA as a Mortgage Lender by the Dept. of Banking & Securities (45078); VA as a Lender and Broker by the State Bank Commissioner (MC1278); and WV as a Mortgage Lender by the WV Division of Financial Institutions (ML-34657).<br/><br/>