Market Commentary

Updated on September 22, 2023 10:05:55 AM EDT

There is no relevant economic data set for release today. It is good to see some recovery of the post-FOMC losses in bonds as the knee-jerk reaction seemed to be overkill. With no major headlines this morning to extend the selling, there is a decent chance of the week closing on a positive note.

Next week brings us a handful of economic reports that are expected to influence mortgage rates, in addition to a couple of Treasury auctions. The week starts light with nothing scheduled for Monday. As the week progresses, the importance of the reports rises, ending with the Fed's preferred inflation reading Friday morning. Further related to the Fed is a public speaking engagement by Chairman Powell late Thursday afternoon.

Also worth noting is that the House of Representatives will be back next week to tackle the pending government shutdown that will happen on the 30th without a temporary spending bill in place. The outlook at the moment is not good, meaning there is a high probability of a shutdown next Saturday night. In general, this would likely be a favorable event for bonds and mortgage pricing, hopefully giving us some much-needed relief from the recent spike in yields and rates. We are not expecting any major headlines on this topic over the weekend. Look for details on all of next week's activities in Sunday evening's weekly preview.

 ©Mortgage Commentary 2023