Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends-March 22, 2016

Tuesday’s bond market has opened in positive territory, due mostly as a reaction to the terror attacks in Belgium. The stock markets are mixed for the most part with the Dow down 41 points and the Nasdaq up 1 point. The bond market is currently up 9/32 (1.89%), but weakness late yesterday should keep this morning’s mortgage rates at yesterday’s levels.

There is nothing of importance scheduled for release today. We are seeing a minor flight to safety into bonds as the overseas terrorist event has hurt stock prices in many markets. These events tend to push stock prices lower as investors move funds to the safety of bonds. As funds come into bonds, their yields and mortgage rates move lower. Today’s move was not significant, but was enough to affect mortgage rates (erasing a small increase from late yesterday). As long as the major stock indexes remain near their current levels, bonds and mortgage rates will likely follow suit.

Tomorrow’s sole report is February’s New Home Sales figures at 10:00 AM ET. The Commerce Department is expected to announce an increase in sales of newly constructed homes. This report tracks a much smaller percentage of home sales than yesterday’s Existing Home Sales report covered, so it should have less of an influence on the markets and mortgage pricing. A large increase in sales would be negative for the bond market and mortgage pricing because it would point towards economic strength.