‚Äč Bond Market Update

Bond Market Update

Bond Market Update

Market Update

Monday, 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 Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
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