Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Mortgage Rates and Lake Tahoe Home Loan Rates-Morning Update-August 12, 2013

Lake Tahoe Mortgage Rates and Lake Tahoe Home Loan Rates:

Monday’s bond market has opened up slightly with no relevant economic data set for release today. The stock markets are fairly calm with the Dow up a mere 5 points and the Nasdaq up 7 points. The bond market is currently up 4/32, which with strength late Friday should improve this morning’s mortgage rates by approximately .250 of a discount point if comparing to Friday’s morning pricing.

There is nothing scheduled for release today that is likely to affect bond trading or mortgage rates. However, the rest of the week brings us seven pieces of economic data that are relevant to the bond and mortgage markets. There is at least one report scheduled each of the four remaining days and five over the last two days of the week.

The key data starts tomorrow with the release of July’s Retail Sales report by the Commerce Department. This data is very important to the financial and mortgage markets because it measures consumer spending at the retail establishments. Since consumer spending makes up over two-thirds of the U.S. economy, any data related to it can cause a fair amount of movement in the markets. A smaller than expected increase would indicate that consumers are spending less than previously thought, pointing towards slower economic growth. This is good news for the bond market and mortgage rates as it eases inflation concerns and makes long-term securities such as mortgage-related bonds more attractive to investors. Current forecasts are calling for an increase of 0.2% in sales.

Overall, I am expecting tomorrow or Thursday to be the most important day of the week. Tomorrow’s Retail Sales report and Thursday’s CPI are the two single most influential reports scheduled this week. Since consumer level inflation is not expected to be an immediate threat, I am leaning towards tomorrow as the day that we will see the most movement in mortgage rates.