Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- May 20, 2016

Friday’s bond market has opened in negative territory with stocks looking to close the week on a strong note. The Dow is currently up 130 points while the Nasdaq has gained 56 points. The bond market is currently down 4/32 (1.85%), but strength late yesterday should prevent much of a move in this morning’s mortgage rates.

Today’s only relevant economic data came from the National Association of Realtors, who announced late this morning that home resales rose 1.7% last month. This was a little stronger than expected and indicates modest growth in housing sector, but was not enough of an increase to cause much of a reaction in bonds or mortgage rates. I believe this morning’s bond softness is more a result of stock gains than this sole report.

Next week has a few scheduled reports that may affect mortgage rates, but none of them are considered key data. One is of fairly high importance, although I don’t see it being a market mover. There are also two Treasury auctions that have the potential to influence bonds enough to cause a minor revision in rates along with a decent number of Fed member speaking engagements that are always wildcards.

With exception to a couple of Fed speeches, Monday has nothing of importance that we need to be concerned with. The data doesn’t start until Tuesday morning and what is being posted that day usually has a minimal impact on mortgage pricing. Look for details on next week’s calendar in Sunday evening’s weekly preview.