‚Äč Bond Market Update

Bond Market Update

Bond Market Update

Market Update

Friday, April 16, 2021

What's going on and why does it matter?
Mortgage bonds opened slightly higher this morning as both bonds and stocks have benefited this week from improved sentiment in the financial markets. Economic data this week has been much better than expected. The new housing reports issued this morning continued the positive trend and showed an impressive 19.4% jump in new housing starts. Even so, Covid cases are rising at an alarming rate both in the US and across the world, threatening economic recovery. The Fed is scheduled to purchase up to $5.330 billion of mortgage bonds today.

What should you do about it?
Watch and see if mortgage bonds can continue to rally, but be prepared to lock your rate quickly if the market changes directions.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 13 Apr Core CPI Mar 0.1% 0.2% 0.3%
Tue 13 Apr CPI Mar 0.4% 0.5% 0.6%
Thu 15 Apr NY Fed Mfg. Index Apr 17.40 19.50 26.30
Thu 15 Apr Initial Jobless Claims Week ending Apr 10 744k 700k 576k
Thu 15 Apr Philly Fed Business Index Apr 51.8 42.0 50.2
Thu 15 Apr Retail Sales Mar -3.0% 5.9% 9.8%
Thu 15 Apr Industrial Production Mar -2.2% 2.8% 1.4%
Thu 15 Apr Capacity Utilization Mar 73.8% 75.6% 74.4% 
Thu 15 Apr Business Inventories Feb 0.3% 0.5% 0.5% 
Fri 16 Apr Building Permits Mar 1.720M 1.750M 1.766M
Fri 16 Apr Housing Starts Mar 1.421M 1.613M 1.739M
Fri 16 Apr U of Mich Consumer Sent. Apr 84.9 88.9 86.5