Bond Market Update
Market UpdateMonday, September 27, 2021
What's going on and why does it matter?
Mortgage bonds opened lower this morning after experiencing steep losses in last week's trading session. Interest rates are starting to rise in response to the Fed's announcement last week that it would begin scaling back its massive bond-buying program later this year with a full exit expected by mid-2022. The economic calendar is quite full this week starting with durable goods orders which came out this morning much stronger than market expectations. The market will also be watching the news from Washington DC with the Senate expected to hold a vote this evening to fund the government through December 3, in addition to suspending the debt ceiling until the end of 2022. The Fed is scheduled to purchase up to $4.7 billion of mortgage bonds today.
What should you do about it?
Lock your rate to be safe.
Economic CalendarEconomic reports that may impact mortgage rates this week:
|Mon 27 Sep||Durable Goods||Aug||-0.1%||0.7%||1.8%|
|Tue 28 Sep||Consumer Confidence||Sep||113.8||114.5|
|Wed 29 Sep||Pending Home Sales Change||Aug||-1.8%||1.3%|
|Thu 30 Sep||GDP final||Q2 2021||6.6%||6.6%|
|Thu 30 Sep||Core PCE Prices final||Q2 2021||6.1%||6.1%|
|Thu 30 Sep||Initial Jobless Claims||Week ending Sep. 25||351k||328k|
|Thu 30 Sep||Chicago PMI||Sep||66.8||65.0|
|Fri 1 Oct||Personal Income||Aug||1.1%||0.3%|
|Fri 1 Oct||Core PCE Price Index||Aug||0.3%||0.2%|
|Fri 1 Oct||ISM Mfg. PMI||Sep||59.9||59.5|
|Fri 1 Oct||U of Mich. Consumer Sent.||Sep||71.0||71.0|