Bond Market Update

Bond Market Update

 Mortgage pricing is better than it was yesterday

Source: Thomson Reuters

Market Update

Thursday, December 7, 2023

What's going on and why does it matter?
Mortgage bonds opened lower this morning as the global bond market worries about the end of the negative interest rate policy in Japan. The Bank of Japan has recently announced that they'll allow interest rates to go up for the first time in a while and the market is starting to adjust to this reality. Meanwhile here in the US, the Initial Jobless Claims report came out this morning in line with market expectations.

What should you do about it?
Watch and see if mortgage bonds can bounce higher off their 200-day moving average, but be prepared to lock your rate if mortgage bonds fall below that level.

Economic Calendar

Economic reports that may impact mortgage rates this week:
Date Report Period Prior Est. Actual
Mon 4 Dec Factory Orders Oct 2.8% -2.8% -3.6%
Tue 5 Dec ISM Non-Mfg. PMI Nov 51.8 52.0 52.7
Tue 5 Dec JOLTS Job Openings Oct 9.553M 9.300M 8.733M
Wed 6 Dec ADP National Employment Nov 113k 130k 103k
Thu 6 Dec Initial Jobless Claims Week ending Dec 2 218k 222k 220k
Fri 7 Dec Non-Farm Payrolls Nov 150k 180k  
Fri 7 Dec Unemployment Rate Nov 3.9% 3.9%  
Fri 7 Dec Average Earnings Nov 0.2% 0.3%  
Fri 7 Dec U of Mich. Consumer Sentiment Dec 61.3 62.0