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Bond Market Update

Market Update

Wednesday, October 23, 2019

What's going on and why does it matter?
Mortgage bonds opened higher this morning and they are making another run at their 100-day moving average, which may operate as a technical ceiling of resistance. Lack of risk appetite in the financial markets is causing investors to favor the safety of bonds at the moment, with ongoing Brexit uncertainty the major culprit. The UK Parliament rejected the Prime Minister's proposed timeline to exit the European Union, and now the EU must consider the request to extend the deadline from October 31 to January 31. Outside of the ongoing Brexit drama, corporate earnings reports this week have been disappointing, leading investors to favor bonds at the expense of stocks.

What should you do about it?
Watch and see if mortgage bonds can break back above their 100-day moving average, but be prepared to lock your rate if mortgage bonds fail to break above that level.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 22 Oct Existing Home Sales Sep 5.49M 5.45M 5.38M
Thu 24 Oct Durable Goods Sep 0.2% -0.7%  
Thu 24 Oct Initial Jobless Claims Week of Oct 14 214k 215k  
Thu 24 Oct New Home Sales Sep 713k 700k  
Fri 25 Oct U of Mich. Consumer Sent. Oct 96.0 96.0  

Daniel Jackson

Daniel Jackson
NMLS: 169485
Nova Home Loans
Corporate NMLS: 3087
(928) 726-7266
454 W Catalina Dr
Yuma, Arizona 85364