Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- October 17, 2015

Friday’s bond market has opened flat despite stronger than expected economic news. The stock markets are mixed but calm with the Dow up 11 points and the Nasdaq down 4 points. The bond market is currently up 1/32 (2.01%), which should keep this morning’s mortgage pricing at yesterday’s levels.

September’s Industrial Production data was posted at 9:15 AM ET this morning, showing a 0.2% decline in output at U.S. factories, mines and utilities. This hints at softening manufacturing activity, making the data good news for bonds and mortgage rates. However, because the decline came of no surprise and this is only a moderately important report, the results have had little impact on this morning’s mortgage rates.

The University of Michigan posted their Index of Consumer Sentiment for October just before 10:00 AM ET this morning. It came in at 92.1, exceeding forecasts of 88.4 and up from September’s 87.2. This means surveyed consumers were much more comfortable with their own financial and employment situations than many had thought. Because rising confidence usually translates into stronger levels of consumer spending, we should consider this data bad news for bonds and mortgage rates.

Next week doesn’t have too much scheduled that we need to be concerned with. The majority of the data that is being posted is housing-related that generally does not have a significant influence on the financial or mortgage markets. There is nothing set for release Monday, so we can expect weekend news and stock movement to drive bond trading at the start of the week. Look for details on next week’s calendar in Sunday evening’s weekly preview.