Lake Tahoe Home Loans, Lake Tahoe Home Loan Rates, Lake Tahoe Mortgage Loans, Lake Tahoe Mortgage Loan Rates, and Lake Tahoe Mortgage Rates:
Monday’s bond market has opened in positive territory, extending Friday’s afternoon rally. The stock markets aren’t influencing bond trading much with the Dow and Nasdaq both nearly unchanged from Friday’s close. The bond market is currently up 3/32, pushing the benchmark 10-year Treasury Note yield down to 2.85%. That small gain, along with strength during afternoon trading Friday should improve this morning’s mortgage rates by approximately .250 of a discount point if comparing to Friday’s morning pricing.
There is nothing of importance scheduled for release today in terms of economic data. However, the rest of the week has seven economic reports scheduled for release that are relevant to the bond market and mortgage rates. Some of the data is considered to be highly important and we have reports set for release the remaining four days. In addition to the data, there are also a relatively high number of public speaking engagements for Federal Reserve members that have the potential to affect the financial and mortgage markets.
The first economic report of the week is December’s Retail Sales data at 8:30 AM ET tomorrow. This Commerce Department report measures consumer spending by tracking sales at U.S. retail level establishments. Since consumer spending makes up over two-thirds of the U.S. economy, any related data is watched closely. Rising consumer sales fuels expectations for broader economic growth that makes long-term bonds less attractive to investors. Current forecasts are calling for no change from November’s sales. A secondary reading that excludes transactions is expected to rise 0.4%. A decline in sales would be good news for bonds and mortgage rates because it would hint at weaker than thought economic growth.
The Fed member speaking engagements are spread throughout the week, with some days having multiple appearances scheduled. The topics of some of them appear to be directly related to economic growth, so their words can also influence the markets enough affect mortgage rates. Their speaking times range from early morning to post-closing, so we could see markets react at different times of the day. Fed Chairman Bernanke is due to speak late morning Thursday.
Overall, tomorrow or Thursday will probably be the most active day for mortgage rates with some key economic data being posted both days. The stock markets, which I believe are due for a pullback, also can be a big influence on bond trading and mortgage pricing any day (stock weakness should equate to bond strength). I still like what I see in bonds right now even after the recent rally and would not be completely surprised to see further gains that drive the benchmark 10-year Treasury Note yield and mortgage rates lower.