Bond Market Update
Bond Market Update
Market Update
Friday, January 15, 2020What'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 |