Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- December 7, 2015

Monday’s bond market has opened the week in positive territory. The stock markets are helping with sizable losses in the major indexes. The Dow is currently down 110 points while the Nasdaq has lost 34 points. The bond market is currently up 7/32 (2.25%), which with Friday’s afternoon strength should improve this morning’s mortgage rates by approximately .250 of a discount point if comparing to Friday’s early pricing.

There is nothing of relevance scheduled for today, so we can expect to see a relatively calm day as long as stocks don’t rally or make another move lower. If stocks extend their morning losses, bonds could improve from current levels. On the other hand, if stocks rebound it is likely that bonds will give up some of their early gains, possibly causing a small upward revision to rates. If stocks stay close to where they are now the rest of the day, mortgage pricing should follow suit.

The rest of the week has only three pieces of monthly economic data scheduled for release in addition to a couple of Treasury auctions that have the potential to influence mortgage rates. Two of the economic releases are considered highly important though and the Treasury auctions are the more important set we regularly deal with, so despite the lack of a busy calendar we still should see noticeable movement in rates this week. The first event worth watching doesn’t take place until Wednesday afternoon.

Overall, Friday should be the most active day of the week with all of the week’s relevant data being posted, but Wednesday afternoon could be fairly active also. The calmest day will likely be tomorrow. It will probably be a calmer week than last week in terms of mortgage rate movement although we still should see rates change over the week. Accordingly, maintaining contact with your mortgage professional is still recommended if still floating an interest rate.