Insights and Analysis: Mortgage and Real Estate Capital Markets Update with Jeff Rosato, SVP of Capital Markets at Nationwide Mortgage Bankers.
Key Takeaways: Bond Market Trends and Fed Outlook
Despite rising mortgage rates, the strong economy and continued consumer spending are keeping prices elevated, which may delay the Federal Reserve’s ability to lower interest rates. This week, we’ll see reports on home sales and hear from Federal Reserve members, but next week will bring more critical data on jobs, economic growth, and inflation, which could influence future interest rate decisions.
I hope everyone enjoyed the weekend! Here is this week’s update on the major bond market indices, scheduled Federal Reserve meetings, upcoming market-moving economic data releases, and general bond market trends.
“Despite the fact that the Fed has shifted its policy stance and begun to cut rates, the path to lower mortgage rates will most likely be slower than initially expected.”
This Week’s Economic Calendar
This week, the economic calendar is relatively light, but we will get Existing Home Sales data on Wednesday and New Home Sales on Thursday. There are also plenty of Fed speaking engagements throughout the week. Things will get more interesting next week with fresh employment data, GDP numbers, and inflation data all being released. This data will be the most recent and important information reviewed by the Fed prior to their next interest rate decision.
As of today, rates remain on the rise. The 10-year Treasury is up sharply by about 10 basis points to 4.17%, and MBS prices are worse by about 0.375 to 0.50 compared to Friday’s close.
We’ll continue tracking the market for any changes—be sure to check in next week for the latest insights!
