Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rate Trends- September 25, 2015

Friday’s bond market has opened in negative territory with stocks posting sizable gains and the day’s economic data showing unfavorable results. The major stock indexes appear ready to close the week out on an up day with the Dow up 154 points and the Nasdaq up 24 points. The bond market is currently down 10/32 (2.16%), which should push this morning’s mortgage rates higher by approximately .250 of a discount point if comparing to Thursday’s morning pricing.

The second revision to the 2nd Quarter Gross Domestic Product (GDP) was posted at 8:30 AM ET this morning, showing that the economy grew at an annual rate of 3.9%. This was slightly higher than the 3.7% the initial revision showed and was expected again this morning. This means the economy was a little stronger than previously thought during the April through June months. However, this data is pretty old at this point so it has had little impact on this morning’s trading and mortgage rates.

The final report of the week was the University of Michigan’s revised Index of Consumer Sentiment for September just before 10:00 AM ET. It came in at 87.2, exceeding forecasts by .2. The variance isn’t much of a concern, but that reading was an increase from the preliminary estimate of 85.7. This means that surveyed consumers felt better about their own financial and employment situations than previously thought. Because rising confidence usually translates into stronger levels of consumer spending, we should consider this news slightly negative for mortgage rates.

Next week is busy in terms of economic reports scheduled for release that have the potential to affect mortgage rates. There is relevant data scheduled each day of the week, but the most important ones will come the latter days. A couple of the reports are considered to be highly important, including the monthly Employment report Friday morning. There is data set for Monday with the release of August’s Personal Income and Outlays that will give us a measurement of consumer ability to spend and current spending habits. Look for details on it and the rest of the week’s calendar in Sunday evening’s weekly preview.