Bond Market Update
Bond Market Update
Market Update
Monday, November 23, 2020What's going on and why does it matter?
Mortgage bonds opened lower this morning as sentiment in the financial markets remains caught between COVID vaccine hopes and the ongoing increase in virus cases. Heavy month-end supply in the Treasury market is also putting some pressure on bond prices as the government continues to issue a record amount of bonds. As for vaccine news, the FDA is expected to grant approval by mid-December for Pfizer and BioNTech to begin immediately distributing its vaccine. Meanwhile, AstraZeneca said its vaccine candidate was 90% effective, joining the ranks of companies reporting positive vaccine trial results. As for economic news, most of this week's economic reports are scheduled for release on Wednesday, due to the Thanksgiving holiday on Thursday. The Fed is scheduled to purchase up to $6.889 billion of mortgage bonds today.
What should you do about it?
Lock your rate to be safe.
Economic Calendar
Economic reports that may impact mortgage rates this week:| Date | Report | Period | Prior | Est. | Actual |
|---|---|---|---|---|---|
| Tue 24 Nov | Consumer Confidence | Nov | 100.9 | 98.0 | |
| Wed 25 Nov | Durable Goods | Oct | 1.9% | 0.9% | |
| Wed 25 Nov | GDP 2nd estimate | Q3 2020 | 33.1% | 33.2% | |
| Wed 25 Nov | Core PCE Prices prelim. | Q3 2020 | 3.5% | 3.5% | |
| Wed 25 Nov | Initial Jobless Claims | Week of Nov 16 | 742k | 730k | |
| Wed 25 Nov | Personal Income | Oct | 0.9% | 0.1% | |
| Wed 25 Nov | Core PCE Price Index | Oct | 0.2% | 0.0% | |
| Wed 25 Nov | U of Mich. Consumer Sent. | Nov | 77.0 | 77.0 | |
| Wed 25 Nov | New Home Sales | Oct | 959k | 970k |