Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- October 23, 2015

Friday’s bond market has opened in negative territory with stocks showing sizable gains. The Dow is up 104 points while the Nasdaq has gained 90 points. The bond market is currently down 14/32 (2.07%), which should push this morning’s mortgage rates higher by approximately .125 of a discount point.

There is nothing of importance scheduled for release today, so as expected, we are seeing bonds react to stock movement. If the major stock indexes extend their morning gains, we could see more pressure in bonds that lead to an upward revision in mortgage pricing later today.

Next week is going to be very interesting and active. We have a good handful of reports scheduled for to be posted, including the extremely important initial reading of the 3rd Quarter Gross Domestic Product (GDP). But what is going to draw even more attention is the FOMC meeting taking place that some analysts think will bring the first rate increase to key short-term interest rates in over 9 years. I am not so convinced it will come next week, although I admit it is a possibility. We should see plenty of movement in the markets leading up to the announcement as investors prepare for it.

There is relevant data scheduled for Monday when September’s New Home Sales report is released. This is generally considered to be of low importance to the markets so its results likely will have little impact on mortgage rates. Look for details on it and the rest of the week’s calendar in Sunday evening’s weekly preview.