Weekly Market Update: Monday, November 18, 2019

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.
MBS Chart

Economic reports that may impact mortgage rates this week:

DateReportPeriodPriorEst.Actual
Tue 19 NovBuilding PermitsOct1.391M1.383M 
Tue 19 NovHousing StartsOct1.256M1.320M 
Thu 21 NovInitial Jobless ClaimsWeek of Nov 11225k220k 
Thu 21 NovExisting Home SalesOct5.38M5.48M 
Fri 22 NovU of Mich Consumer Sent.Nov95.795.7 

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