UPDATE ON MARKET
Week of: Monday, March 21, 2016
Present Market Conditions
Market has opened in negative territory today despite favorable housing news. Although, bonds have improved from their pre-release levels. The stock markets are starting the week relatively calm. The Bond market was down (10 Yr. Bond closed at 1.91%), which should push today’s mortgage rates higher comparing to Friday’s early pricing.
The National Association of Realtors gave us February’s Existing Home Sales data late this morning. It showed a surprising 7.1% drop in home re-sales last month, falling well short of expectations. The larger than predicted decline in sales indicates weakness in the housing sector. Because a weakening housing sector makes broader economic growth less likely, we can consider this data good news for the bond and mortgage markets.
Tomorrow has nothing of importance scheduled that is likely to influence mortgage rates and The week's economic calendar is on the light side.
The Bond markets will close early at 2:00 p.m. ET on Thursday in observance of Good Friday and both Stocks and Bonds are closed on Friday.
Overall, we suspect we will see some movement in mortgage rates this week, but we are not expecting an overly volatile week. It is common to see some pressure in bonds as investors make moves to protect themselves over the long holidays, so don’t be surprised if bonds weaken (higher mortgage rates) slightly early Thursday afternoon before closing.