Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- July 22, 2015

Wednesday’s bond market has opened up slightly despite stronger than expected housing news. Stocks may be helping by showing minor losses during early trading. The Dow is currently down 15 points while the Nasdaq has lost 24 points. The bond market is currently up 3/32 (2.32%), which should improve this morning’s mortgage rates by approximately .125 of a discount point. That improvement is mostly a result of strength in bonds during afternoon trading yesterday.

The National Association of Realtors gave us today’s only relevant economic data at 10:00 AM ET. They announced that home resales rose 3.2% last month, exceeding forecasts. The report also showed an increase in average sales price and a lower percentage of distressed sales than in May. These indicate housing sector strength, making the data negative for the bond market and mortgage rates. Fortunately, this is only a moderately important report and has had a minimal impact on today’s mortgage rates.

Tomorrow has two minor pieces of economic data for the markets to digest. The first will be at 8:30 AM when we will get last week’s unemployment figures. They are expected to show that 279,000 new claims for benefits were filed last week, down slightly from the previous week’s 281,000 initial claims. Rising claims are an indication of a softening employment sector, so the higher the number of new claims the better the news it is for mortgage rates.

June’s Leading Economic Indicators (LEI) will be posted at 10:00 AM ET tomorrow. This Conference Board index attempts to measure economic activity over the next three to six months. While it is not a factual report, it still is considered to be of moderate importance to the bond market. It is expected to show a 0.2% increase, meaning it is predicting minor gains in economic growth over the next few months. A large decline in the index would be good news for the bond and mortgage markets.