Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- May 23, 2016

Monday’s bond market has opened in positive territory with stocks mixed and nothing of importance on today’s calendar. The Dow is currently down 9 points while the Nasdaq has gained 11 points. The bond market is currently up 5/32 (1.82%), which may improve this morning’s mortgage rates slightly from Friday’s early pricing.

There is nothing set for release today that is likely to affect mortgage rates with exception to a couple of speaking engagements by current Fed members. The rest of the week brings four pieces of economic data that may impact mortgage rates in addition to two Treasury auctions. None of the events are considered key or expected to be a market mover, but most of the reports do carry enough importance to affect mortgage pricing if they show a decent sized variance from forecasts.

The first release of the week will be April’s New Home Sales report at 10:00 AM ET tomorrow. It is the sister report of last week’s Existing Home Sales. This data gives us a similar measurement of housing sector strength and future mortgage credit demand, but tracks a much smaller portion of housing sales than that report did. Actually, it probably will not have much of an impact on mortgage pricing unless it shows a sizable variance from forecasts. Analysts are expecting to see gains in sales from March’s level, meaning the new home portion of the housing sector strengthened last month.

Overall, I think Thursday is the best candidate for most active day for mortgage rates this week although Friday’s GDP reading will draw plenty of attention also if it shows a sizable revision. With two relatively important reports scheduled for Friday, it may also be an active day. The least active day will probably be Wednesday unless the stock markets rally or show sizable losses. Please keep in mind that we don’t necessarily have to have important data for the markets and mortgage pricing to move considerably. Therefore, please maintain contact with your mortgage professional if still floating an interest rate and closing in the near future.