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Bond Market Update

Market Update

Friday, November 16, 2018

What's going on and why does it matter?
Mortgage bonds are continuing to trade in positive territory as global bond yields continue to fall. Financial markets are concerned that a Brexit deal could fall through in light of high-level cabinet resignations in the UK and the possibility that Prime Minister May could face a no-confidence vote from her party. The US-China trade war is also back in the spotlight on comments from a senior US trade official that China’s written response on trade reforms is unlikely to trigger a breakthrough at talks between Presidents Trump and Xi at the upcoming G20 meeting. This provides a compelling backdrop for mortgage bonds to continue bouncing higher off their 30-day moving average.

What should you do about it?
Watch for mortgage bonds to continue their rally, but be prepared to lock your rate if mortgage bonds fall back below their 30-day moving average.


Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 20 Nov Building Permits Oct 1.270M 1.269M  
Tue 20 Nov Housing Starts Oct 1.201M 1.225M  
Wed 21 Nov Durable Goods Orders Oct 0.7% -2.5%  
Wed 21 Nov Initial Jobless Claims Week of Nov 12 216k 215k  
Wed 21 Nov Existing Home Sales Oct 5.15M 5.20M  
Wed 21 Nov U of M Consumer Sent. Nov 98.3 98.3%  

Jen Du Plessis

Jen Du Plessis
NMLS: 192843
Kirney Group Investment Capital, LLC

jen@kirneygroupinvestmentcapital.com

(703) 864-4597
33575 Austin Grove Road, Suite 22
Bluemont, Virginia 20135

     

For more information, please reference the NMLS Consumer Access Website at http://nmlsconsumeraccess.org.