Bond Market Update

Bond Market Update


 Mortgage pricing is better than it was yesterday

Source: Thomson Reuters

Market Update

Thursday, November 20, 2025 

What's going on, and why does it matter?

Mortgage bonds continue to be range-bound, and stocks are set to open sharply higher as the AI trade is back in vogue today. Nvidia reported better-than-expected earnings yesterday after the closing bell and an upgraded outlook for Q4. Meanwhile, the minutes from the Federal Reserve's late October meeting revealed, "Many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target rate unchanged for the rest of the year." This significantly diminishes the odds of a December rate cut.

On today's economic calendar, the much-delayed and now stale September jobs report came out, showing a jump in job creation from the prior month. The Department of Labor said it would be able to issue an October jobs report because the data, “is not able to be retroactively collected.” Meanwhile, the December jobs report will be released on December 16, which is after the Fed's meeting on December 9-10. December rate cut odds are currently at 28%, according to CME FedWatch, down from nearly 100% a month ago. This change in market expectations is a significant reason why mortgage pricing has worsened since the Fed cut rates in October.

What should you do about it?
Lock your rate to be safe.

Economic Calendar

Economic reports that may impact mortgage rates this week:
Date Report Period Prior Est. Actual
Mon 17 Nov NY Fed (Empire State) Mfg. Index Nov 10.7 6.0 18.7
Tue 18 Nov *Import Prices Oct - - N/A
Tue 18 Nov *Industrial Production Oct - - N/A
Tue 18 Nov *Capacity Utilization Oct - - N/A
Tue 18 Nov *Factory Orders (delayed) Aug -1.3% 1.5% 1.4%
Wed 19 Nov *Housing Starts Oct - - N/A
Wed 19 Nov *Building Permits Oct - - N/A
Wed 19 Nov US Trade Deficit Aug -$78.2 -$61B -$59.6B
Wed 19 Nov FOMC Minutes from the Oct meeting - - - -
Thu 20 Nov *Initial Jobless Claims Week ending Nov 15 NA 225k 220k
Thu 20 Nov Philly Fed Business Index Nov -12.8 -3.1 -1.7%
Thu 20 Nov *Non-Farm Payrolls Sep 22k 50k 119k
Thu 20 Nov *Unemployment Rate Sep 4.3% 4.3% 4.4%
Thu 20 Nov *Average Earnings Sep 0.3% 0.3% 0.2%
Thu 20 Nov Existing Home Sales Oct 4.06M 4.08M  
Fri 21 Nov S&P Services PMI Nov 55.2 54.8  
Fri 21 Nov S&P Mfg. PMI Nov 52.2 52.0  
Fri 21 Nov U of Mich Consumer Sent. Nov 53.6 50.5  

*Data may be delayed or unavailable due to the government shutdown from Oct. 1 to Nov. 12.