Updated on September 24, 2021 10:03:07 AM EDT
Unfortunately, the bond selling may not be over yet. It appears there may be more room for bond yields and mortgage rates to move higher before settling down, particularly over the next day or two. If closing in the near future, it would be prudent to consider locking a rate if still floating.
This morning’s only economic data was Augusts New Home Sales report from the Commerce Department at 10:00 AM ET. They announced a 1.5% increase in sales of newly constructed homes last month. This was in line with forecasts after an upward revision to July’s sales. Because this report covers such a small portion of all home sales in the country, it carries a low level of significance. Accordingly, we have not seen a reaction to the data.
Fed Chairman Powell has a speaking engagement this morning via webcast that traders will be attentive to. Although, it is hard to imagine that we will get a major surprise after his press conference Wednesday afternoon. Still, we could see rates react heavily to something he says at this appearance.
Next week is extremely active in terms of scheduled economic releases and other events that have the potential to influence rates. There are multiple events scheduled each day except Wednesday, the only day of the week without at least one item. The week starts with the important Durable Goods Orders report Monday and concludes with the very important ISM manufacturing index Friday. In between, there are plenty of other events that we will be watching. Look for details on all of next week’s activities in Sunday evenings’ weekly preview.
©Mortgage Commentary 2021