Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- April 27, 2016

Wednesday’s bond market has opened in positive territory as traders prepare for today’s Fed meeting. The stock markets are showing minor weakness with the Dow and Nasdaq down 39 and 43 points respectively. The bond market is currently up 11/32 (1.89%), which should keep this morning’s mortgage rates at yesterday’s levels.

We saw some weakness in bonds late yesterday despite a fairly decent 5-year Treasury Note auction. The benchmarks we use to gauge investor demand in the sales showed an above average interest in the securities. That leads me to believe that the selling was not related to the auction. For whatever the reason, we did see some lenders revise rates slightly higher during afternoon trading but the changes were not widespread. This morning’s bond gains simply put rates back where they were yesterday morning. If your lender did not revise intraday yesterday, you likely will not see much of a change in this morning’s pricing.

This morning has no relevant economic data for the markets to digest. We do however, have the adjournment of the two-day FOMC meeting this afternoon. It is widely expected that it will yield an announcement of no change to key short-term interest rates. What market participants will be looking for is an indication of when the Fed expects to adjust key rates again. Any surprises should create plenty of volatility, possibly leading to a sizable change in mortgage rates this afternoon. The adjournment will be at 2:00 PM ET, so any reaction will come during mid-afternoon trading. This meeting will not be followed by a Fed press conference or economic projections.

There is data scheduled for release tomorrow, including the extremely important initial GDP reading. We will be updating today’s report shortly after the markets have a chance to react to the post-meeting statement. Tomorrow’s releases will be included in that afternoon revision.