Monday, September 19, 2016

Tuesday: Housing Starts

by Bill McBride on 9/19/2016 06:39:00 PM

From Matthew Graham at Mortgage News Daily: Mortgage Rates Steady to Slightly Higher

Mortgage Rates were unchanged for a third straight day, although several lenders did raise rates at the end of the day. ... Lenders continue quoting conventional 30yr fixed rates of 3.5% on top tier scenarios, with the runners-up being 3.625% and 3.375% in that order.

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.
emphasis added
Tuesday:
• At 8:30 AM ET, Housing Starts for August. Total housing starts increased to 1.211 million (SAAR) in July. Single family starts increased to 770 thousand SAAR in July. The consensus for 1.190 million, down from the July rate.

• At 10:00 AM, Regional and State Employment and Unemployment (Monthly) for August 2016