Domestic Political Issues
Also worth noting is that the House of Representatives will be back this 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 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. News of a deal that will pass both chambers of Congress should have a negative influence on rates. No progress towards a deal will likely help boost bonds and lower rates as the week progresses.
Overall, the most active day for rates may be Friday, but Wednesday is expected to have a noticeable move also. No day stands out as a clear candidate for calmest day since there is so much scheduled. We can expect to see an active week for rates, so keep an eye on the markets if still floating an interest rate and closing in the near future.