Week of: Monday September 19, 2016
Present Market Conditions
Mortgage Bonds begin the week near unchanged as the markets gear up for some big central bank announcements. The big event is the two-day FED meeting on Tuesday and ends Wednesday with the release of the monetary policy statement at 2:00 p.m. ET, followed by a press conference by Fed Chair Yellen at 2:30 p.m. ET.
There are no significant economic readings this week that can affect the Bond Market and as result Mortgage rates, except FEDmeeting on Wednesday.
After a rash of weaker-than-expected economic reports in the past month, low economic growth and subdued inflation, there is a slim 12% chance of hike to the Fed Funds Rate. We don't see any chance of a hike this week.
Keep in mind that Wednesday afternoon brings the FOMC Announcement (where the Fed releases its updated policy statement). This can be a significant source of volatility for rates markets. That said, volatility could already be picking up as the Bank of Japan releases its own policy update earlier in the morning. Although markets (and rates) can go either way in response to these events, big, negative reactions tend to happen faster and more abruptly than big, positive reactions.
it would be prudent to maintain contact with us !!!