Market Commentary

Updated on January 19, 2018 10:46:31 AM EST

Overnight news out of Washington D.C. that the House passed a temporary spending bill hasn't had much of an impact on today's bond trading. There is question whether it will pass the Senate though. With the deadline of midnight tonight to avoid the first government shutdown since October 2013, we may see some movement intraday as rumors and updates hit the wires. However, I don't believe we will see a noticeable impact on mortgage rates since this is only a temporary bill that pushes the issue until mid-February.

Today's only relevant economic data was January's preliminary reading of the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. It came in at 94.4, falling short of expectations and December's 95.9. Analysts were expecting to see an increase to 97.0, meaning surveyed consumers were less optimistic about their own financial situations than many had thought. That is good news for bonds and mortgage rates.

Next week does not bring us a large number of reports, but does have a couple of important releases late in the week, including the initial 4th quarter GDP reading. In addition to the data, there are two Treasury auctions that have the potential to affect rates slightly mid-week. Look for details on all of next week's activities, along with relevant weekend news, in Sunday's evening's weekly preview.

 ©Mortgage Commentary 2018

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