Friday’s bond market has opened in positive territory even though stocks are showing improvements from Wednesday’s close. The Dow is currently up 53 points while the Nasdaq has gained 15 points. The bond market is currently up 9/32 (2.21%), which should improve this morning’s mortgage rates by approximately .125 of a discount point.
There is nothing of importance scheduled for release today. This morning’s bond gains aren’t surprising considering it is somewhat of an unofficial holiday in the markets. Many traders are still home for the long weekend, creating lighter volume and magnified moves due to the thin trading volume. Accordingly, minor bond gains or losses in this atmosphere isn’t anything worth getting optimistic or too concerned about and is not a reflection of longer-term trends.
The financial and mortgage markets were closed yesterday in observance of the Thanksgiving Day holiday. The stock markets are expected to close at 1:00 PM ET today while bonds will wrap up the week at 2:00 PM ET. Therefore, if we see an intraday revision in rates today, it will likely come during early afternoon hours.
Next week is pretty busy in terms of economic reports scheduled for release that may impact mortgage rates. It starts with November’s ISM Index late Monday morning and includes the almighty monthly Employment report next Friday. It is likely to be an active week for mortgage rates, so look for details on the upcoming week’s activities in Sunday evening’s weekly preview.