Friday’s bond market has opened in negative territory again as the general negative momentum continues. Stocks are showing losses with the Dow down 30 points and the Nasdaq down 56 points. The bond market is currently down 7/32 (1.88%), but due to some strength late yesterday we shouldn’t see much of a change in this morning’s mortgage rates.
There is nothing of importance scheduled for release today. If we see an intraday change to mortgage rates, it likely will be a result of a sizable move in stocks. If the major stock indexes extend their morning losses like we saw yesterday, we may see bonds strengthen and mortgage rates improve slightly. On the other hand, stock strength could lead to an intraday increase in mortgage pricing.
Next week is much busier than this week was in terms of relevant economic releases and other events that have the potential to influence the financial and mortgage markets. Besides a handful of reports that include the initial GDP reading for last quarter, we also have an FOMC meeting and a couple of Treasury auctions to deal with. There is a strong possibility of seeing a fair amount of volatility in the markets and mortgage rates next week.
Unlike many Mondays, there is a piece of economic news scheduled for release this coming Monday. We will get March’s New Home Sales figures late Monday morning, giving us a small measure of housing sector strength. This report is not considered to be highly important and usually takes a wide variance from forecasts for it to directly affect rates. Look for details on it and the rest of the week’s calendar in Sunday evening’s weekly preview.