Bond Market Update
Market UpdateFriday, 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 CalendarEconomic reports that may impact mortgage rates this week:
|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|