Friday's bond market has opened down slightly with no relevant economic data to drive trading. The stock markets are showing relatively minor losses with the Dow down 24 points and the Nasdaq down 12 points. The bond market is currently down 3/32, which will likely push this morning's mortgage rates higher by approximately .125 - .250 of a discount point.
There is no relevant economic data scheduled for release today. This leaves the stock markets to be the most likely contributor if we see any changes to mortgage rates later today. If the major stock indexes move lower than current levels, there is a possibility of seeing bonds improve. However, it will likely require stocks taking a noticeable move lower for bonds to improve enough to revise mortgage rates lower this afternoon.
If the stock markets are able to stage a rally, we can expect to see bonds falter and mortgage rates move higher during afternoon hours. However, it is most likely that we will see a fairly calm day today and little action in the mortgage market.
Next week is fairly light in terms of economic reports. We do have one important manufacturing sector release scheduled, but it is known to be quite volatile from month-to-month so it is difficult to predict its results. There are a couple of housing sector reports also scheduled along with some less important data and two semi-important Treasury auctions. Nothing of relevance is scheduled until Tuesday morning. Look for details on next week's event in Sunday's weekly preview.
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