‚Äč Bond Market Update

Bond Market Update

Bond Market Update

Market Update

Thursday, May 19, 2022

What's going on and why does it matter?
Mortgage bonds opened higher this morning as stock prices continue to tumble on weak retail earnings reports that indicate inflation is hitting consumers and eating into corporate profits. This is leading to fears of recession and "stagflation." On today's economic calendar, new unemployment claims ticked slightly higher and the Philly Fed business index came out much weaker than market expectations. The Fed is scheduled to purchase up to $1.528 billion of mortgage bonds today.

What should you do about it?
Watch for mortgage pricing to improve, but be prepared for more market volatility.

Economic Calendar

Economic reports that may impact mortgage rates this week:
Date Report Period Prior Est. Actual
Mon 16 May NY Fed Mfg. Index May 24.60 17.00 -11.60 
Tue 17 May Retail Sales Apr 0.5% 0.9% 0.9%
Tue 17 May Industrial Production Apr 0.9% 0.4% 1.1%
Tue 17 May Capacity Utilization Apr 78.3% 78.5% 79.0% 
Tue 17 May Business Inventories Mar 1.5% 1.9% 2.0%
Wed 18 May Building Permits Apr 1.870M 1.812M 1.819M
Wed 18 May Housing Starts Apr 1.793M 1.765M 1.724M
Thu 19 May Initial Jobless Claims Week ending May 14 203k 200k 218k
Thu 19 May Philly Fed Business Index May 17.6 16.0% 2.6%
Thu 19 May Existing-Home Sales Apr 5.77M 5.62M 5.61M