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As I said last week, keep an eye on the world markets as they have impact
on home loan rates....
Monday's bond market has opened in negative territory following early
stock strength. The stock markets opened the week with strong gains after
news from China about their currency that was taken as extremely favorable
for the international markets. China’s vow to allow a flexible Yuan invigorated
optimism in the global recovery.... The U.S. stock markets are following
overseas strength with the Dow up 101 points and the Nasdaq up 14 points.
These gains in stocks have pushed the bond market down 15/32, but we should
still see an improvement in this morning's mortgage rates of approximately
.125 of a discount point over Friday's morning rates due to strength late
Friday.
There is no relevant economic news scheduled for release today, allowing
the stock markets to heavily influence bond trading and mortgage rates.
There are five economic reports scheduled for release the rest of the week
in addition to another Federal Open Market Committee (FOMC) meeting and two
Treasury auctions that may affect mortgage rates.
Tomorrow brings us the first data with the release of May's Existing
Home Sales report. The National Association of Realtors will give us figures
on home resales late tomorrow morning. This data helps us measure housing
sector strength and mortgage credit demand, but it usually takes a large
variance from forecasts for it to cause a noticeable change to mortgage
rates. It is expected to show an increase in sales from April to May.
Overall, it appears today may not be the quietest day of the week after
all. We will likely see more volatility this week, particularly Wednesday
afternoon when the first relevant Treasury auction is finished and the FOMC
meeting adjourns. The same goes for Thursday with the week's most important
data being released during morning hours and the 7-year Note auction results
are posted early afternoon. So, while today is an active day for rates, it
probably will not be the only one this week.
Waiting to refinance for some lower home loan rates makes no sense
at all ~~ as we are at the bottom of interest rates. Call us today to
review your home loan and see if we can help save you money.
Click here to read more Market Forecasts.
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