Thursday’s bond market has opened in positive territory following weaker than expected economic news. The stock markets appear to be ready to wrap the year up on a negative note with the Dow down 102 points and the Nasdaq down 33 points. The bond market is currently up 10/32 (2.27%), which should improve this morning’s mortgage rates by approximately .250 of a discount point over Wednesday’s early rates.
Yesterday’s 7-year Treasury Note auction did not go very well, following suit of Tuesday’s 5-year Note sale. However, unlike Tuesday afternoon, bonds managed to gain ground after results were posted instead of selling off. This led to an afternoon rate improvement by some lenders. If your lender did revise rates a little lower yesterday afternoon, you should see less change in this morning’s pricing.
Today did have a piece of minor economic data released. At 8:30 AM ET the Labor Department announced that 287,000 new claims for unemployment benefits were filed last week. This was a noticeable increase from the previous week’s 267,000 initial claims and higher than the 270,000 that was predicted. That increase indicates the employment sector weakened last week, making the data good news for bonds and mortgage rates.
The bond market will close at 2:00 PM ET today ahead of tomorrow’s New Year’s Day holiday, so if there is an intra-day change to mortgage rates it will likely come during early afternoon trading. The stock markets are scheduled to be open for a full day of trading today. All banks and major U.S. financial markets will be closed tomorrow for the holiday and will reopen Monday morning for regular hours.
We would like to take this opportunity to wish everyone a safe holiday and a wonderful New Year!