Monday’s bond market has opened relatively flat with today’s only data not showing any surprises and stocks calm also. The stock markets are starting the week with modest losses of 9 points in the Dow and 3 points in the Nasdaq. The bond market is currently down 1/32 (1.77%), but due to a little strength late Friday we may see a slight improvement in today’s rates.
This week’s only relevant economic data was February’s Factory Orders at 10:00 AM ET this morning. It showed a 1.7% decline in new orders, nearly matching forecasts of a 1.6% drop. This is a sign of manufacturing sector weakness, but since it was expected it has had no impact on this morning’s mortgage rates.
The rest of the week has little in terms of economic data scheduled that is expected to influence mortgage rates. Besides the weekly unemployment update, the minutes from the most recent FOMC meeting is the only thing left on the calendar that is likely to influence mortgage rates. This means stocks may have a bigger impact on bonds and mortgage pricing than they usually do the next several days.
Overall, look for the most movement in rates the mid part of the week. Wednesday could be the most active day of the week if the FOMC minutes reveal any surprises. Tomorrow appears to be the lightest and will probably be the calmest day for mortgage rates. Look for the stock markets to also influence bond trading and mortgage rates a good part of the week due to the light economic release schedule. I am expecting it to be a relatively calm week for the mortgage market, but that can change at any time so please maintain contact with your mortgage professional if still floating an interest rate.