Bond Market Update
Market Update
Friday, February 15, 2019
What's going on and why does it matter?
Mortgage bonds opened lower this morning, and they are hovering near their 30-day moving average with no clear direction. Financial markets remain concerned about global economic growth following yesterday's shockingly weak US retail sales report along with a disappointing inflation report from China. Even so, there has been encouraging news regarding US-China trade discussions which have concluded. The US team and China President Xi said this week’s round of meetings were productive, and that talks would continue in Washington next week. As for the federal government budget negotiations, President Trump is expected to sign a spending bill that avoids another government shutdown, but he is also expected to declare a national emergency on the US-Mexico border.
What should you do about it?
Watch and see if mortgage bonds can remain above their 30-day moving average, but be prepared to lock your rate quickly if mortgage bonds fall below that level.
Economic Calendar
Economic reports that may impact mortgage rates this week:
| Date | Report | Period | Prior | Est. | Actual |
|---|---|---|---|---|---|
| Tue 12 Feb | JOLTS Job Openings | Dec | 6.888M | - | 7.335M |
| Wed 13 Feb | Core CPI | Jan | 0.2% | 0.2% | 0.2% |
| Wed 13 Feb | CPI | Jan | -0.1% | 0.1% | 0.0% |
| Thu 14 Feb | Initial Jobless Claims | Week of Feb 4 | 234k | 225k | 239k |
| Thu 14 Feb | PPI final demand | Jan | -0.2% | 0.1% | -0.1% |
| Thu 14 Feb | Retail Sales | Dec | 0.2% | 0.2% | -1.2% |
| Thu 14 Feb | Business Inventories | Nov | 0.6% | 0.2% | -0.1% |
| Fri 15 Feb | NY Fed Mfg Index | Feb | 3.90 | 7.00 | 8.80 |
| Fri 15 Feb | Industrial Production | Jan | 0.3% | 0.1% | -0.6% |
| Fri 15 Feb | U of Mich Consumer Sent. | Feb | 91.2 | 94.0 | 95.5 |
Ben Hulshof
NMLS: 216697
Windmill Mortgage Services LLC
Corporate NMLS: 998503
ben@windmillmortgage.com
http://www.windmillmortgage.com
(614) 362-6828
271 S. Liberty Rd., Unit C
Powell, Ohio 43035
