Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- March 2, 2015

Monday’s bond market has opened in negative territory even though both of this morning’s economic reports gave us fairly favorable news. The stock markets are likely a big contributor to this morning’s bond losses with the Dow up 114 points and the Nasdaq up 31 points. The bond market is currently down 15/32 (2.04%), but strength late Friday should limit this morning’s increase in mortgage rates to approximately .125 of a discount point. That is assuming your lender did not improve pricing late Friday.

January’s Personal Income and Outlays data kicked off this week’s calendar at 8:30 AM ET this morning. It showed that personal spending rose 0.3% during the month while spending slipped 0.2%. Both readings were slightly weaker than forecasts were calling for, indicating that consumers had less money to spend and actually spent less than many had thought. That makes the data slightly positive for the bond and mortgage markets.

The Institute for Supply Management (ISM) gave us their manufacturing index for February late at 10:00 AM ET. It came in at 52.8, falling a little short of the 53.0 that was expected. This means fewer surveyed trade executives felt business improved than what was predicted. That is also favorable news for bonds although a reading above 50.0 is a sign of manufacturing sector strength. Therefore, we can consider the news neutral-to-slightly favorable for rates.

Tomorrow has nothing of importance scheduled for release. It is the only day of the week with nothing set to be posted. But the rest of the week has plenty scheduled that is likely to affect mortgage rates. Friday is the most important day of the week due to the significance of the monthly Employment report that is scheduled. Accordingly, it would be prudent to maintain contact with your mortgage professional if still floating an interest rate and closing soon.