‚Äč Bond Market Update

Bond Market Update

Bond Market Update

Market Update

Thursday, July 2, 2020

What's going on and why does it matter?
Mortgage bonds are retreating slightly and they appear to be heading toward their 10-day moving average. The US economy added a record number of jobs last month, a whopping 1.8 million more than expected, as it appears the economy is coming out of recession. However, the recovery is on shaky ground as coronavirus cases continue to spike, with the US reporting a daily record of over 50,000 new cases yesterday. Global stocks are in rally mode with investors hoping for a Covid-19 vaccine following encouraging news yesterday from Pfizer and BioNTech. The market closes early today and is closed tomorrow for the Independence Day holiday.

What should you do about it?
Watch and see if mortgage bonds can remain above their 10-day moving average, but be prepared to lock your rate if mortgage bonds fall below that level.

Economic Calendar

Economic reports that may impact mortgage rates this week:
Date Report Period Prior Est. Actual
Mon 29 Jun Pending Home Sales May -21.8% 18.9% 44.3%
Tue 30 Jun Chicago PMI Jun 32.3 45.0 36.6
Tue 30 Jun Consumer Confidence Jun 86.6 91.7 98.1
Wed 1 Jul ADP National Employment Jun -2.760M 3.000M 2.369M
Wed 1 Jul Construction Spending May -2.9% 1.0% -2.1%
Wed 1 Jul ISM Mfg PMI Jun 43.1 49.4 52.6 
Thu 2 Jul Non-farm Payrolls Jun 2.509M 3.000M 4.800M
Thu 2 Jul Unemployment Rate Jun 13.3% 12.3% 11.1%
Thu 2 Jul Average Earnings Jun -1.0% -0.7% -1.2%
Thu 2 Jul Initial Jobless Claims Week of Jun 22 1.480M 1.355M 1.427M
Thu 2 Jul Factory Orders May -13.0% 8.6% 8.0%