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Of late, mortgage interest rates have been trending upwards. While bonds have had a dismal start to the week, there is a sliver of hope today as the market rallies up to +36bp. After what appeared to be a bounce back day on Thursday May 16th, the bond market got crushed the following day finishing at -58bps. Since, the bond market has gradually been losing.
The bond market opened up flat this morning, but has since rallied. Hopefully the gains will have a positive impact on mortgage interest rates.
Economic news is quiet to start the week, but later this week 5 key events could add volatility to the market. Wednesday, May 22nd marks the release of the Existing Home Sales report, along with the release of the Federal Reserve Minutes from May 1st. On Thursday, May 23rd, Jobless Claims report will be out along with the New Home Sales report. To end the week, the Durable Goods report will be released on Friday, May24th.
These 5 reports could have a key impact in shifting the market. Last week, the unexpectedly positive Jobless Claims report started the bond market downward spiral. We may see that trend continue or reverse depending on where the numbers fall.