Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- January 28, 2015

Wednesday’s bond market has opened in positive territory despite a lack of economic data and early stock gains. Stocks are showing moderate gains with the Dow up 76 points and the Nasdaq up 43 points. The bond market is currently up 7/32 (1.80%), but due to weakness late yesterday, we likely will see little change in this morning’s mortgage rates.

There is no economic data scheduled for release today, but we do have the 5-year Treasury Note auction and more importantly, the FOMC meeting adjournment. Today’s Treasury auction results will be posted at 1:00 PM ET. If the sale was met with a strong demand from investors, the broader bond market may improve during early afternoon trading. If there was a lackluster interest, we could see bond selling and higher mortgage rates shortly after.

However, the focus of afternoon trading will be the two-day FOMC meeting that adjourns at 2:00 PM ET. It is expected to yield no change to short-term interest rates, but as is often the case, traders will be looking at the post-meeting statement for any indication of the Fed’s change in sentiment about the economy and when the first increase to short-term rates will be made. There is a decent possibility of seeing some afternoon volatility in the markets due this statement. However, I would be surprised if it revealed any significant surprises or changes to sentiment on the Fed’s monetary policy plans.

There is nothing of significance scheduled for tomorrow except for weekly unemployment numbers and the 7-year Treasury Note auction. We will be posting an update to this report today shortly after the markets have an opportunity to react to this afternoon’s events. They will be addressed in this afternoon’s revision.