Monday, January 30, 2017
What’s going on and why does it matter?
This is a big week for the market with the Federal Reserve monetary policy statement scheduled for Wednesday, and the closely watched non-farm payrolls report scheduled for Friday. The market is not anticipating another rate hike from the Fed on Wednesday. However, investors will be picking apart every word from the Fed’s monetary policy statement and Fed Chair Yellen’s press conference in search for clues about the Fed’s future bond buying plans. In the meantime, the Fed is scheduled to purchase up to $1.9 billion in GNMA and 15-year conventional mortgage bonds today, and another $1.625 billion in 30-year conventional mortgage bonds tomorrow. Mortgage bonds may make a run up to test their 30-day and 10-day moving averages, which have been operating as technical ceilings of resistance.
What should you do about it?
Lock your rate as long as mortgage bonds continue to trade below their 30-day and 10-day moving averages.
Economic Calendar
Economic reports that may impact mortgage rates this week:
| Date | Report | Period | Prior | Estimate | Actual |
| Mon 30 Jan |
Personal Income |
Dec | +0.1% | +0.4% | +0.3% |
| Mon 30 Jan |
Core PCE Prices |
Dec | 0.0% | +0.1% | +0.1% |
| Mon 30 Jan |
Pending Home Sales |
Dec | -2.5% | +1.1% | +1.6% |
| Tue 31 Jan |
Chicago PMI |
Jan | 53.9 | 55.0 | |
| Tue 31 Jan |
Consumer Confidence |
Jan | 113.7 | 113.0 | |
| Wed 1 Feb |
ADP National Employment |
Jan | 153,000 | 165,000 | |
| Wed 1 Feb |
Construction Spending |
Dec | +0.9% | +0.2% | |
| Wed 1 Feb |
ISM Mfg. PMI |
Jan | 54.7 | 55.0 | |
| Wed 1 Feb |
Fed Funds Rate |
– | 0.75% | 0.75% | |
| Wed 1 Feb |
Total Vehicle Sales |
Jan | 18.43M | 17.55M | |
| Thu 2 Feb |
Initial Jobless Claims |
Week of Jan 22 |
259,000 | 250,000 | |
| Fri 3 Feb |
Non-Farm Payrolls |
Jan | 156,000 | 175,000 | |
| Fri 3 Feb |
Average Earnings |
Jan | +0.4% | +0.3% | |
| Fri 3 Feb |
Factory Orders |
Dec | -2.4% | +0.9% |
Scott Shenton
NMLS Number: 1039731
Apex Home Loans
Corporate NMLS Number: 2884
sshenton@apexhomeloans.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 