Friday's bond market has opened in positive territory despite stock market gains. The Dow and Nasdaq are showing solid improvements with gains of 80 points and 22 points respectively. The bond market is currently up 3/32, but we still will likely see a sizable increase in this morning's mortgage rates as a result of weakness in bonds late yesterday. I am expecting to see today's rates to be approximately .250 -.375 of a discount point higher than yesterday's morning rates were.
There is no relevant economic data scheduled for release today. It appears that traders are more or less tweaking their portfolios today after the recent volatility in the markets. Unless we see a significant move in bonds from their current levels, we likely will see mortgage rates remain at this morning's levels the rest of the day.
Next week brings us the release of a handful of economic releases, but there is only two that should be considered of high importance to the markets and mortgage rates. But, the week's data does give us a broad spectrum of information, ranging from consumer confidence readings to manufacturing activity to housing strength and consumer spending data. Even though several of the reports are not important individually, collectively as a group they could paint a detailed picture of economic strength or weakness and lead to changes in mortgage rates.
There is no relevant data scheduled for release Monday. The first report is one of the two important ones and it is due out Tuesday morning. Look for more details on it and the rest of the week's events in Sunday's weekly preview.
©Mortgage Commentary 2007
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