Lake Tahoe Mortgage Rates and Lake Tahoe Home Loans:
Monday’s bond market has opened in negative territory, extending Friday’s late selling. The stock markets are showing early gains with the Dow up 17 points and the Nasdaq up 20 points. The bond market is currently down 9/32, which coupled with Friday’s afternoon selling should put this morning’s mortgage rates approximately .375 – .500 of a discount point over Friday’s morning pricing.
There is nothing of importance scheduled for release today, so nothing to prevent Friday’s negative tone from carrying into this morning’s trading. The rest of the week brings us the release of only three pieces of monthly economic data, in addition to the minutes from the last FOMC meeting. Even with nothing of relevance on this afternoon’s calendar, we could see further pressure in bonds as the day progresses, especially if stocks move higher from current levels.
The week’s first data comes Wednesday morning when July’s Existing Home Sales report is posted. We will also get the minutes from the most recent FOMC meeting Wednesday afternoon that have the potential to be a market mover. There is relevant economic data being posted Thursday and Friday, but none of those reports are considered to be highly important.
Overall, Wednesday is likely to be the most active day for mortgage rates and tomorrow appears to be the best candidate for least important. Stocks will probably be a contributing factor to bond movement several days with no key economic data scheduled this week. Today’s bond losses have pushed the benchmark 10-year Treasury Note yield to 2.85%. Unfortunately, I don’t believe we have a good chance of seeing that reverse until we get closer to 2.95%. Since mortgage rates tend to follow bond yields this is would be bad news for mortgage shoppers.