Tuesday’s bond market has opened in negative territory, taking back some of yesterday’s afternoon gains. Stocks are showing modest losses of 40 points in the Dow and 27 points in the Nasdaq. The bond market is currently down 11/32 (3.72%), but that strength late in the day should allow this morning’s mortgage rates to be approximately .125 of a discount point lower than Monday’s early pricing. If you saw an intraday improvement yesterday, you should see an increase in this morning’s rates.
Either way, we can expect a somewhat calm few days for rates, unless something unexpected happens. We have no monthly or quarterly economic data scheduled over the remaining days. Thursday’s weekly unemployment update may draw a little more attention than usual due to the lack of other influences, but will not be a market mover regardless of what it shows. In other words, the bond market is looking for something to trade on with little options at the moment.
30 yr - 3.72%