Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- January 4, 2016

Monday’s bond market has opened the new year in positive territory, caused by a couple of events. The stock markets are one of those reasons with the major indexes showing significant losses during early trading following weaker economic data from overseas. The Dow is currently down 388 points while the Nasdaq has lost 142 points. The bond market is currently up 14/32 (2.21%), which should improve this morning’s mortgage rates by approximately .250 of a discount point from Thursday’s levels. The financial and mortgage markets were closed Friday due to the holiday.

Today’s only economic data was a highly important report that gave us favorable results and is contributing to this morning’s bonds gains. The Institute for Supply Management (ISM) posted their manufacturing index for December at 10:00 AM ET this morning, showing a reading of 48.2. This was lower than the 49.0 that expected and a decline from November’s 48.6, meaning that manufacturer sentiment slipped last month when it was expected to rise slightly. That raises more concern about the manufacturing sector of the economy and could alter the Fed’s plans for raising short-term interest rates if it continues on this track.

There is nothing of importance scheduled for tomorrow but the rest of the week brings us the release of three more monthly economic reports in addition to the minutes from the last FOMC meeting that have the potential to influence the bond market and quite possibly mortgage rates.

Overall, Friday is the key day of the week with the almighty monthly Employment report being posted, but Wednesday also has a decent chance of being pretty active. The least active day will likely end up being tomorrow assuming that stocks remain calm. Please still keep an eye on the markets and maintain contact with your mortgage professional if still floating an interest rate as a couple of this week’s events have the potential to cause severe market volatility.