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Bond Market Update

Market Update

Friday, December 14, 2018

What's going on and why does it matter?
Mortgage bonds are drifting sideways and hovering right above their 100-day moving average. Economic reports overnight in China and Europe were weaker than expected, although today's retail sales report here in the US was in line with market expectations. In fact, retail sales excluding food, gas, auto parts, and building materials came out much stronger than market expectations. This mixed bag of economic news may cause a mixed market reaction today. After today, all eyes will turn to next week's economic calendar which includes a Federal Reserve meeting and a potential hike in short-term interest rates.

What should you do about it?
Watch and see if mortgage bonds can remain in positive territory above their 100-day moving average, but be prepared to lock your rate quickly if bonds fall back below that level.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Mon 10 Dec JOLTS Job Openings Oct 7.009M - 7.079M
Tue 11 Dec PPI final demand Nov 0.6% 0.0% 0.1%
Wed 12 Dec Core CPI Nov 0.2% 0.2% 0.2%
Wed 12 Dec CPI Nov 0.3% 0.0% 0.0%
Thu 13 Dec Initial Jobless Claims Week of Dec 3 231k 227k 206k
Fri 14 Dec Retail Sales Nov 0.8% 0.2% 0.2%
Fri 14 Dec Industrial Production Nov 0.1% 0.3% 0.6%
Fri 14 Dec Capacity Utilization Nov 78.4% 78.5% 78.5% 
Fri 14 Dec Business Inventories Oct 0.3% 0.5% 0.6% 

Ben Hulshof

Ben Hulshof
NMLS: 216697
Windmill Mortgage Services LLC
Corporate NMLS: 998503
(614) 362-6828
271 S. Liberty Rd., Unit C
Powell, Ohio 43035