Monday’s bond market has opened up slightly with stocks mixed and no relevant economic data set for release today. The major stock indexes are mixed with the Dow down 15 points and the Nasdaq up 4 points. The bond market is currently up 2/32 (2.30%), which should keep this morning’s mortgage rates at Friday’s levels.
This 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, but none of it starts until Wednesday afternoon. Two of the economic releases are considered highly important and the Treasury auctions are the more important set of auctions we regularly deal with, so despite the lack of a busy calendar we still should see noticeable movement in rates this week.
The first events we need to deal with are the two Treasury auctions. Wednesday’s 10-year Note auction is the more important one and will likely have a bigger influence on mortgage rates. Results of the sales will be posted at 1:00 PM ET each day. If they are met with a strong demand from investors, particularly international buyers, we should see strength in the broader bond market and improvements to mortgage pricing during afternoon hours those days. On the other hand, a weak interest in the auctions could lead to upward revisions to mortgage rates.
Overall, I suspect Thursday will be the most active day of the week with Retail Sales data and 30-year Bond auctions set, but Friday’s Producer Price Index and consumer sentiment reports can also cause movement in rates. 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 rate changes multiple days. Accordingly, maintaining contact with your mortgage professional is still strongly recommended if still floating an interest rate.