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Bond Market Update

Market Update

Thursday, September 19, 2019

What's going on and why does it matter?
Mortgage bonds opened slightly higher this morning after hitting stiff resistance and getting turned down at their 30-day moving average in yesterday's trading. The market is still digesting the Fed's decision from yesterday during which the Fed cut short-term interest rates by 0.25%, but failed to signal that more rate cuts are on the way. Earlier today, the Bank of Japan and the Bank of England both kept their monetary policies unchanged. On today's economic calendar, initial jobless claims came out lower than expectations, while the existing home sales report is due out later this morning.

What should you do about it?
Watch for mortgage bonds to make another run at their 30-day moving average, but be prepared to lock your rate if mortgage bonds break below their 100-day moving average.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Mon 16 Sep NY Fed Mfg Index Sep 4.80 4.00 2.00
Tue 17 Sep Industrial Production Aug -0.2% 0.2% 0.6%
Tue 17 Sep Capacity Utilization Aug 77.5% 77.6% 77.9%
Wed 18 Sep Building Permits Aug 1.317M 1.300M 1.419M
Wed 18 Sep Housing Starts Aug 1.191M 1.247M 1.364M
Wed 18 Sep Fed Funds Target Rate - 2.25% 2.0% 2.0%
Thu 19 Sep Initial Jobless Claims Week of Sep 9 204k 212k 208k
Thu 19 Sep Existing Home Sales Aug 5.42M 5.38M 5.49M

Patrick Glaros

Patrick Glaros
NMLS: 308804
Cardinal Financial, Limited Partnership
Corporate NMLS: 66247
(972) 728-3420
5001 Spring Valley Road, Suite 500W
Dallas, Texas 75244