Weekly Market Update

Monday, December 23, 2019

What's going on and why does it matter?

Mortgage bonds opened slightly higher this morning as they make another attempt to test their 30-day moving average, which may operate as a technical ceiling of resistance. Year-end holiday vacations are in full swing, so trading volume is likely to be muted this week. As for US-China trade talks, China announced earlier this morning that it was cutting import tariffs on over 850 products beginning January 1, while President Trump said on Saturday that a phase one deal would be signed “very shortly”. In other news, the bond market is set to digest a large supply of new bonds being issued this week, which may put some downward pressure on bond prices. The economic calendar is light this week, and the durable goods report came out this morning much weaker than market expectations.

What should you do about it?

Lock your rate to be safe.

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Economic reports that may impact mortgage rates this week: