Monday’s bond market has opened relatively flat with no economic news scheduled for release this morning. The stock markets are showing modest gains with the Dow up 31 points and the Nasdaq up 2 points. The bond market is currently up 2/32, which will likely keep this morning’s mortgage rates at Friday’s levels.
This week brings us the release of only one piece of semi-relevant monthly economic data however, we will also get the weekly unemployment claims. It usually has little impact on bond trading and thus, mortgage rates. Therefore, the stock markets could very well be the major influence on bond trading and mortgage rates this week.
The first piece of news to watch will be Thursday when the Labor Department will post the weekly unemployment statistics. Since this data tracks only a week’s worth of claims it usually does not affect mortgage rates. However, since this week is so light in terms of economic news, the markets may react to its results a little more than usual.
November’s Goods and Services Trade Balance report will be posted early Friday. This report gives us the size of the U.S. trade deficit, but partly because it covers November it is not considered to be of high importance. This means it will likely not have much of an impact on mortgage rates either.
With a lack of highly relevant of economic data scheduled to be released, we will likely see a fairly calm week in mortgage rates. This is assuming that the stock markets are not too volatile. If the stock markets rally, funds could shift from bonds to stocks, driving bond price slower and mortgage rates higher. If stocks are weak, mortgage rates should improve as investors bring funds into bonds as shelter from the volatility in stocks.
Craig Higdon has over 15 years experience in financing commercial loans, small business loans, construction loans, and land loans. He owns Excelsion Mortgage, a commercial direct lender offering real estate investors a wide range of resources to help them in their investment activities.
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Mortgage Loan Market Commentary 1-7-08
Stock Markets In The Driver’s Seat
Monday’s bond market has opened relatively flat with no economic news scheduled for release this morning. The stock markets are showing modest gains with the Dow up 31 points and the Nasdaq up 2 points. The bond market is currently up 2/32, which will likely keep this morning’s mortgage rates at Friday’s levels.
This week brings us the release of only one piece of semi-relevant monthly economic data however, we will also get the weekly unemployment claims. It usually has little impact on bond trading and thus, mortgage rates. Therefore, the stock markets could very well be the major influence on bond trading and mortgage rates this week.
The first piece of news to watch will be Thursday when the Labor Department will post the weekly unemployment statistics. Since this data tracks only a week’s worth of claims it usually does not affect mortgage rates. However, since this week is so light in terms of economic news, the markets may react to its results a little more than usual.
November’s Goods and Services Trade Balance report will be posted early Friday. This report gives us the size of the U.S. trade deficit, but partly because it covers November it is not considered to be of high importance. This means it will likely not have much of an impact on mortgage rates either.
With a lack of highly relevant of economic data scheduled to be released, we will likely see a fairly calm week in mortgage rates. This is assuming that the stock markets are not too volatile. If the stock markets rally, funds could shift from bonds to stocks, driving bond price slower and mortgage rates higher. If stocks are weak, mortgage rates should improve as investors bring funds into bonds as shelter from the volatility in stocks.
Craig S. Higdon, “The Investment Property Insider”
www.ExcelsionMortgage.com, www.InvestmentPropertyInsider.com
Craig Higdon has over 15 years experience in financing commercial loans, small business loans, construction loans, and land loans. He owns Excelsion Mortgage, a commercial direct lender offering real estate investors a wide range of resources to help them in their investment activities.
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