Mortgage Rates December 27th 2019

Mortgage rates on Friday December 27th, 2019 were stable as the bond market finished the week in rally mode. The 10 year tresury yield moved below 1.90% and MBS Fannie Mae prices rallied before closing. There were no major economic reports today however there are few notable ones next. That being said; unless they are significantly above or below estimates we probably won't see much reaction in the bond market or with consumer mortgage rates.

Here are some of the important economic reports next week:

• Chicago PMI
• Pending Home Sales
• Consumer Confidence
• Weekly Unemployment claims
• ISM Manufacturing PMI

Chicago PMI, Consumer Confidence and the ISM Manufacturing reports typically have an inlfuence over bond market direction but as mentioned it's unlikely we'll see a big move unless the reported numbers are sigificantly different from expectations.

Mortgage Application Volume:

With the holidays comes some much needed downtime for those working in the mortgage industry. As in years past; mortgage applications declined as home owners and home buyers focus on more important things (like family). However once we get past January 2nd mortgage application volume will pick up; especially refinance applications.

For those looking for a great industry source for mortgage information I highly suggest Mortgage News Daily. The site is jammed packed with quality information to educate home owners and home buyers. And if you don't understand something the group at MND are really helpful.

Heading in to January the industry is looking for some stability after the bond market volatility seen after September 2019. 15 year, 20 year and 30 year fixed mortgage rates could benefit from a stable bond market as it becomes easier for mortgage lenders to estimate future prices.

Some industry experts are surprised that the market didn't surge causing rates to move higher after the Phase One trade agreement between the United States and China. Many people were expecting the 10 year treasury yield to move aboe 2.00% and 30 year fixed mortgage rates above 4.00%. The good news is that never happened as bond investors didn't think the trade deal was going to stimulate the economy that much.