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Bond Market Update

Market Update

Friday, August 17, 2018

What's going on and why does it matter?
Mortgage bonds are hovering near their 100-day moving average, which has operated as a stiff ceiling of technical resistance for nearly a year.  Financial markets were initially optimistic yesterday after news broke that the US and China are set to reopen trade negotiations next week. However, market sentiment began to turn negativeas Turkey’s currency came under renewed pressure on the threat of more sanctions if an American pastor is not released. Also, investors are turning cautious and trying to limit their exposure ahead of next week’s holidays in Turkey with local markets closed for most of the week. The economic calendar is relatively light today, and the Fed won't be buying any mortgage bonds today or Monday. 

What should you do about it?
It's probably a good idea to lock your rate while mortgage bonds remain near the upper-end of their recent trading range.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Wed 15 Aug NY Fed Mfg Index Aug 22.6 20.0 25.6
Wed 15 Aug Retail Sales Jul 0.5% 0.1% 0.5%
Wed 15 Aug Industrial Production Jul 0.6% 0.3% 0.1%
Wed 15 Aug Capacity Utilization Jul 78.0% 78.2% 78.0% 
Wed 15 Aug Business Inventories Jun 0.4% 0.1% 0.1%
Thu 16 Aug Building Permits Jul 1.292M 1.310M 1.311M
Thu 16 Aug Housing Starts Jul 1.173M 1.260M 1.168M
Thu 16 Aug Initial Jobless Claims Week of Aug 6 213k 215k 212k
Fri 17 Aug U of Mich Consumer Sent. Aug 97.9 97.8 95.3

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