Monday Market Commentary: Short Trading Week Can Be Volatile

by Alex Stenback on November 19, 2007

1119_rate_chart
                                                                  Graphic via MSNBC
Last Week:
Mortgage bonds eeeked out some modest improvement last week after the CPI and PPI (consumer and producer price indices, respectively, which measure inflation) came in on par with market expectations – though there is a credible argument that inflation is not so benign, and may force rates up. Despite the differeing opinions on the level of inflation, Mortgage rates remain on a gentle downtrend.
This Week:
The economic calendar will give us a glimpse at the potentially market moving Fed Minutes (insider notes from the last Fed Meeting, which provide additional insight into the Fed’s stance regarding future rate cuts) and housing starts. Skeleton crews at the bond trading desks over a holiday-shortened week can make for a volatile mix.  If you have not locked your rate and are closing soon, this can be a tricky week to float. Tread carefully.
This Week’s Economic Calendar [Barrons]

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