Monday’s bond market has opened down slightly with stock gains driving trading. The major stock indexes are starting the week with the Dow up 74 points and the Nasdaq up 16 points. The bond market is currently down 3/32 (2.44%), which should keep this morning’s mortgage rates very close to Friday’s morning pricing.
There is nothing of importance scheduled for today or tomorrow. Therefore, any intraday move in rates later today or tomorrow morning will likely come as a result of stock strength or weakness. Generally speaking, stock strength makes bonds less appealing to investors while stock losses tend to help boost bond prices and lower mortgage rates.
The rest of the week doesn’t have too much scheduled either that has the potential to affect mortgage pricing. There are no monthly or quarterly economic reports to watch. What we do have is a couple of Treasury auctions and the minutes from the most recent FOMC meeting the middle part of the week. None are considered to be highly important, but all three do carry the potential to influence bond trading enough for mortgage rates to react.
Overall, I see Wednesday as the key day of the week, although the most movement in the bond market and mortgage pricing will probably take place during afternoon hours. We still may see some movement in rates from day to day but unless something unexpected happens in the geopolitical arena, any move will likely be minor. I never recommend cutting contact off with your mortgage professional if still floating an interest rate. However, this is probably going to be a fairly calm week for mortgage rates, at least compared to recent weeks.