This past week was filled with so much good news — the biggest of which was the signing of Phase One of the U.S. and China trade pact.

This trade deal is a very positive development for the U.S., China, and the world, and paves the way for future business investment and other trade deals around the globe. This also removed what was a big uncertainty for many months.

The economic data was already amazing with the following reports coming in better than expectations:

  1. Small Business
  2. Retail Sales
  3. Philly Fed Index
  4. Initial Jobless Claims

And speaking of better than expectations, we also watched the start of corporate earnings season and most of the big banks handily beat expectations.

All of this good news has pushed stocks to all-time highs, but at the same time mortgage bonds and home loan rates remained right at the best levels in three years.

Bottom line: the U.S. economy remains quite strong with little chance of a recession anytime soon. Yet, home loan rates have not moved higher, giving many an incredible opportunity to purchase or refinance a home.

Forecast for the Week
With the U.S.-China Phase One trade pact having been signed this past week, the financial markets will get back to what will drive the trading activity in the days and weeks ahead, earnings season.

A slew of earnings reports will be released this week which will directly impact stocks, bonds, and home loan rates. If the numbers continue to stream in positive, it could push bond prices lower, and rates higher. The opposite is also true.

Economic data will be extremely light with just Existing Home Sales and Weekly Initial Jobless Claims being released, so the focus will be on the earnings data.

All U.S. financial markets are closed on Monday in observance of Martin Luther King Jr. Day.

Source: Vantage

Related Articles

This past week was a bit rough for the bond market as home loan rates steadily ticked higher and off the best levels in three years. The coronavirus has been a tailwind to the bond market and home loan rates for the past few weeks, but this week the story…
Read More of the post Recovering From Coronavirus

The coronavirus outbreak in China continued to grip the financial markets this week. The total affected and number of deaths rose sharply throughout the week suggesting the virus is not yet contained. Stocks hate uncertainty and bonds love uncertainty. As a result, bonds traded higher to their best levels since…
Read More of the post Rates Decline Again

This past week, we watched home loan rates tick modestly higher and retreat from three-year lows. Why? There are three main reasons: U.S and Iran. On Wednesday, the de-escalation of tensions between the U.S. and Iran brought an immediate sense of calm to the financial markets. As a result, stocks traded…
Read More of the post The Good News Continues

The new year and new decade started, and good news: some things don't change. Stocks picked up right where they left off in 2019 by touching all-time highs. And bonds, which also performed well in 2019, continue to hover near three-year highs, keeping home loan rates near 3-year lows. Many…
Read More of the post Nice Start to 2020