What’s going on and why does it matter?
|Mortgage bonds opened flat this morning although they remain in positive territory above their 30-day and 100-day moving averages. The market’s attention is still focused on a potential US-China trade deal, but there is no new news on how US-China trade talks are going beyond that the talks remain constructive and progress is being made.|
The Fed is scheduled to purchase up to $1.6 billion of mortgage bonds today as they continue to reinvest mortgage pre-payments back into the market. Pre-payments have been running higher than normal due to the influx of refinances that have taken place recently. The economic calendar is relatively light this week, although the Federal Reserve will release minutes from the October 29-30 meeting on Wednesday.
What should you do about it?
Watch for mortgage bond prices to continue to improve, but be prepared to lock your rate if the market changes directions.
Economic reports that may impact mortgage rates this week:
|Tue 19 Nov||Building Permits||Oct||1.391M||1.383M|
|Tue 19 Nov||Housing Starts||Oct||1.256M||1.320M|
|Thu 21 Nov||Initial Jobless Claims||Week of Nov 11||225k||220k|
|Thu 21 Nov||Existing Home Sales||Oct||5.38M||5.48M|
|Fri 22 Nov||U of Mich Consumer Sent.||Nov||95.7||95.7|