Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trend-July 22,2014

Tuesday’s bond market has opened down slightly with this morning’s economic data showing mixed results and stock posting early gains. The Dow is currently up 66 points while the Nasdaq has gained 34 points. The bond market is currently down 5/32 (2.49%), which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

June’s Consumer Price Index (CPI) was posted at 8:30 AM ET this morning, revealing a 0.3% increase in the overall reading and a 0.1% rise in the core data. The overall reading matched forecasts and the core reading was slightly lower than expected, meaning inflationary pressures at the consumer level of the economy remained subdued last month. That makes the data slightly favorable for the bond and mortgage markets.

The National Association of Realtors announced late this morning that home resales rose 2.6% in June, to their highest level in 8 months. That was a bit stronger than forecasts but not enough of a margin to cause much concern in the bond market. Therefore, we can consider the data to be slightly negative for bonds because it hints at economic growth.

Tomorrow has nothing of importance scheduled that will likely influence mortgage rates. This will leave the recent geopolitical events and stock markets to drive bond trading and mortgage pricing tomorrow. Unless we see a significant rally or selling in stocks, I am expecting mortgage rates to remain fairly calm tomorrow.