Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Home Loan Rates and Lake Tahoe Mortgage Rates-Morning Summary-July 23, 2013

Lake Tahoe Home Loan Rates and Lake Tahoe Mortgage Rates:

Tuesday’s bond market has opened in negative territory even with a lack of economic news and an uneventful open in stocks. The major stock indexes are mixed with the Dow up 34 points and the Nasdaq down 7 points. The bond market is currently down 9/32, which will likely push this morning’s mortgage rates higher by approximately .125 – .250 of a discount point.

There is nothing of relevance on today’s calendar, but that hasn’t prevented a negative open in bonds. This morning’s losses have pushed the yield on the benchmark 10-year Treasury Note back above 2.50% (currently 2.52%). It is important for it to move back under that threshold for mortgage rates to start a downward trend. If not, the risk of bond yields and mortgage rates moving higher in the immediate future is fairly high in my opinion.

June’s New Home Sales report will be posted at 10:00 AM ET tomorrow. This Commerce Department report gives us another measurement of housing sector strength and is the sister release of yesterday’s Existing Home Sales report. Analysts are expecting it to show an increase in sales of newly constructed homes, indicating that the new home portion of the housing sector gained some strength last month. That would be considered negative news for bonds, but since this data tracks only a small percentage of all home sales it usually has little impact on the bond market and mortgage rates unless it varies greatly from forecasts. Yesterday’s report covered most of the home sales in the U.S.

Tomorrow also has the first of this week’s two Treasury auctions that could influence bond trading and mortgage pricing. 5-year Treasury Notes will be sold tomorrow while the 7-year Note auction will be held Thursday. Results will be posted at 1:00 PM ET each day. If investor interest is strong, we can expect the broader bond market to strengthen and mortgage rates to move lower. However, a lackluster demand could lead to bond selling and higher mortgage rates during afternoon tomorrow and Thursday.