Market Update
Monday, March 27, 2017
What’s going on and why does it matter?
Financial markets are reversing the “Trump trade,” with stock prices declining and bond prices improving in reaction to the defeat of the healthcare bill on Friday. The failure of the Republican party to unite on the bill is casting doubt on the Trump Administration’s ability to deliver on other growth policies such as tax reform and economic stimulus spending. Mortgage bond prices are approaching their 100-day moving average for the first time since October, 2016. It will be interesting to see if they can break above that level or if the 100-day moving average will operate as a technical ceiling of resistance. The Fed’s mortgage bond buying activity today is limited to $1.125 billion in GNMA mortgage bonds. The economic calendar is relatively quiet for the next few days, but it picks up toward the end of this week.
What should you do about it?
Watch for bond prices to improve, but be prepared to lock quickly if the market changes directions.
Economic Calendar
Economic reports that may impact mortgage rates this week:
| Date | Report | Period | Prior | Estimate | Actual |
| Tue 28 Mar |
Consumer Confidence |
Mar | 114.8 | 114.0 | |
| Thu 30 Mar |
GDP | Q4 2016 |
+3.5% | +2.0% | |
| Thu 30 Mar |
Core PCE Prices |
Q4 2016 |
+1.7% | +1.2% | |
| Thu 30 Mar |
Initial Jobless Claims |
Week of Mar 20 |
261,000 | 247,000 | |
| Fri 31 Mar |
Personal Income |
Feb | +0.4% | +0.4% | |
| Fri 31 Mar |
Core PCE Price Index |
Feb | +0.3% | +0.2% | |
| Fri 31 Mar |
Chicago PMI |
Mar | 57.4 | 56.7 | |
| Fri 31 Mar |
U of Mich. Consumer Sentiment |
Mar | 96.3 | 97.6 |
Scott Shenton
NMLS Number: 1039731
Apex Home Loans
Corporate NMLS Number: 2884
waterwookiee@yahoo.com
https://www.apexhomeloans.com/scottshenton
(240) 268-3156
3204 Tower Oaks Blvd, Suite 400
Rockville, Maryland 20852
Apex Home Loans, Inc. NMLS #2884. For more information, please reference the NMLS Consumer Access Website at http://nmlsconsumeraccess.org. Licensed by: DE as a Lender by the Office of the State Bank Commissioner (011603); DC as a Dual Authority Mortgage Lender by the Department of Insurance, Securities and Banking (MLB2884); FL as a Mortgage Lender by the FL Office of Financial Regulation (MLD1088); MD as a Mortgage Lender by the Dept. of Labor, Licensing & Regulation (06-4989); N.J. Department of Banking and Insurance (2884); PA as a Mortgage Lender by the Dept. of Banking & Securities (45078); VA as a Lender and Broker by the State Bank Commissioner (MC1278); and WV as a Mortgage Lender by the WV Division of Financial Institutions (ML-34657).
New Market Mortgages with Scott Shenton 