‚Äč Bond Market Update

Bond Market Update

Bond Market Update

Market Update

Friday, January 15, 2020

What's going on and why does it matter?
Mortgage bonds opened higher this morning and stocks opened lower despite President-elect Biden’s $1.9 trillion “American Rescue Plan” announced last night. Financial markets are concerned about rising Covid cases across the world which is leading to more lockdowns and extension of restrictions, likely delaying economic recovery. There are quite a few economic reports scheduled for release today that the market will be digesting, including the retail sales report which came out worse than market expectations. The Fed is scheduled to purchase up to $6.409 billion of mortgage bonds today.

What should you do about it?
Watch and see if mortgage bonds can continue to rebound, but be prepared to lock your rate if mortgage bonds resume their decline.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 12 Jan JOLTS Job Openings Nov 6.652M - 6.527M
Wed 13 Jan Core CPI Dec 0.2% 0.1% 0.1%
Wed 13 Jan CPI Dec 0.2% 0.4% 0.4%
Thu 14 Jan Initial Jobless Claims Week of Jan 4 787k 795k 965k
Fri 15 Jan NY Fed Mfg. Index Jan 4.90 6.00 3.50
Fri 15 Jan PPI final demand Dec 0.1% 0.3% 0.3%
Fri 15 Jan Retail Sales Dec -1.1% 0.0% -0.7%
Fri 15 Jan Industrial Production Dec 0.4% 0.4% 1.6%
Fri 15 Jan Capacity Utilization Dec 73.3% 73.5% 74.5%
Fri 15 Jan Business Inventories Nov 0.7% 0.5% 0.5%
Fri 15 Jan U of Mich Consumer Sent. Jan 80.7 80.0 79.2