Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Home Loan Rates and Lake Tahoe Mortgage Rates-Morning update-July 25,2013

Lake Tahoe Home Loan Rates and Lake Tahoe Mortgage Rates:

Thursday’s bond market has opened in negative territory, extending yesterday’s selling. The stock markets are mixed yet again with the Dow down 56 points and the Nasdaq up 10 points. The bond market is currently down 11/32, which should push this morning’s mortgage rates higher by approximately .250 of a discount point.

The Commerce Department reported early this morning that new orders for durable goods or big-ticket products rose 4.2% last month. This was a larger than expected increase, indicating a stronger than predicted manufacturing sector. However, this data is known to be quite volatile from month to month and a secondary reading that excludes higher priced items such as airplanes and other transportation-related orders showed no change from May when analysts had forecasted a small increase. So, even though the headline number showed stronger than expected activity, the data hasn’t really had too much of an influence on this morning’s mortgage rates.

Also posted early this morning was the weekly unemployment update from the Labor Department. They announced that 343,000 new claims for unemployment benefits were filed last week, up from the previous week’s revised total of 336,000. Analysts were expecting to see an increase of 6,000 new claims. The variance wasn’t enough to cause any alarm or joy in the markets. In other words, we can consider the data neutral and uneventful for the bond market and mortgage rates.

Yesterday’s 5-year Treasury Note auction didn’t go very well with several benchmarks we use to gauge investor demand showing relatively weak interest. That doesn’t give us much to be optimistic about in today’s 7-year Note auction. Results will be posted at 1:00 PM ET, so any reaction in the bond and mortgage markets will come during early afternoon trading. Today’s sale is actually more important for mortgage rates because the securities are closer in term to mortgage bonds than yesterday’s sale was. If investor demand was high, we should see the bond market recover some of this morning’s losses, possibly leading to a small improvement in mortgage rates during afternoon hours.

Tomorrow’s only relevant economic data is the revised reading to July’s University of Michigan Index of Consumer Sentiment just before 10:00 AM ET. This index will help us measure consumer optimism about their own financial situations and is considered relevant because rising consumer confidence usually translates into higher levels of spending, which adds fuel to the economic recovery and is looked at as bad news for bonds. Tomorrow’s release is an update to the preliminary reading we saw two weeks ago, so unless we see a drastic revision to the preliminary estimate of 83.9, I think the markets will probably shrug this news off.