Tuesday’s bond market has opened in negative territory following stronger than expected economic news. The stock market is in negative ground also with the Dow down 24 points and the Nasdaq down 1 point. The bond market is currently down 13/32 (2.06%), but due to strength late yesterday we should see only a slight increase in this morning’s mortgage rates if there is one at all.
The Commerce Department gave us today’s only economic data with the release of September’s Housing Starts at 8:30 AM ET. They announced a 6.5% increase in new housing groundbreakings last month, exceeding forecasts. Most of the increase is being attributed to multi-unit properties such as apartment complexes and not single-family homes. Still, the data should be considered slightly negative for the bond and mortgage markets because it points towards economic strength.
Tomorrow has nothing of importance scheduled for release. If we see a noticeable movement in mortgage rates it likely will be a result of either a stock rally or sell-off. The markets seem to be somewhat content thought until we get closer to next week’s FOMC meeting. There are a couple reports scheduled for Thursday morning, but none are considered highly important or carry the potential to be a market mover.