Lake Tahoe Home Loans, Lake Tahoe Home Loan Rates, Lake Tahoe Mortgage Loan Rates, Lake Tahoe Mortgage Loans and Lake Tahoe Mortgage Rates:
Tuesday’s bond market has opened in negative territory with stocks showing early gains and news of a possible agreement that may avoid military action in Syria. The major stock indexes are showing noticeable gains with the Dow up 91 points and the Nasdaq up 19 points. The bond market is currently down 12/32, which will likely push this morning’s mortgage rates higher by approximately .125 – .250 of a discount point.
There is nothing of importance set for release today in terms of economic data.
The big news this morning was an announcement that Syria has agreed to give up control of its chemical weapons. It is believed that such a move will avert a
military strike from the U.S. Regardless of how that plays out, the news has
put pressure on bonds since overseas conflicts tend to hurt stock prices and
boost bonds. The fact that a missile strike by the U.S. is much less likely to
take place now has caused somewhat of a reversal of the flight-to-safety in
bonds that we saw when the issue became public.
Tomorrow morning has nothing of relevance scheduled either, so expect stock
movement and progress on the Syria issue to drive bond trading and mortgage
pricing. If an agreement to give up the chemical weapons does come to fruition
from all parties involved, it will be difficult to expect bond prices to
improve tomorrow morning. That doesn’t necessarily mean we could be in for more selling and higher rate. However, there is more likelihood of seeing mortgage pricing remain the same or move higher tomorrow morning than there is of seeing an improvement to rates.
The first scheduled event that is expected to influence mortgage rates will
take place tomorrow afternoon when the first of this week’s two relevant
Treasury auctions concludes. 10-year Treasury Notes will be sold tomorrow,
followed by 30-year Bonds Thursday. If investor demand was strong during the
sale, we could see strength in the broader bond market after results are
posted. On the other hand, a weak demand from investors could lead to falling
bond prices and higher mortgage rates.