Lake Tahoe Home Loan Rates and Lake Tahoe Mortgage Rates:
Friday’s bond market has opened in positive territory with stocks showing minor losses and nothing of significance on today’s calendar. The Dow is currently down 42 points while the Nasdaq has lost 20 points, mostly as a result of weaker corporate earnings news. The bond market is currently up 10/32, but due to weakness in trading late yesterday, we will likely see little change in this morning’s mortgage rates if comparing to Thursday’s morning pricing.
This morning’s bond gains have dropped the yield on the benchmark 10-year Treasury Note to 2.50%. It appears there is some support at this level in the market, so it is important to see the yield move below this level or the likelihood of seeing mortgage rates move upward from where they are this morning remains high. There is another important threshold at 2.42% that will be key in determining mortgage rate movement also, but we need to cross this bridge first. Failure to fall below 2.49/2.50% likely means it will move back to somewhere around 2.55 – 2.60%. And since mortgage rates tend to follow bond yields, this would translate into higher mortgage rates in the immediate future.
Worth noting or reminding is that we have seen plenty of volatility in bond trading and mortgage rates most Friday afternoons over the past month and a half or so. Unfortunately, that volatility has been negative for mortgage shoppers many more times than it has led to lower mortgage rates. It is easy to start looking towards the weekend and put the financial week behind us. However, keeping an eye on the markets as the week wraps up is strongly recommended if still floating an interest rate and closing in the near future. If bond prices fall and yields start rising again this afternoon, mortgage lenders will be quick to make upward revisions to rates.
Next week has a few economic reports scheduled for release that may influence mortgage rates in addition to a two semi-relevant Treasury auctions. None of the economic data is considered to be key or highly important, but a couple of the reports can lead to a change in mortgage pricing if they show a noticeable variance from forecasts. One of those releases is scheduled for Monday morning when the National Association of Realtors posts June’s Existing Home Sales report. Look for details on it and the rest of the week’s activities in Sunday’s weekly preview.