This holiday-shortened week brings us the release of only two factual economic releases. However, both of them are not likely to affect mortgage rates much. The bond market is expected to close early Wednesday and Friday and be closed the entire day Thursday in observance of the Thanksgiving Day holiday. In addition, I expect to see light trading in the financial markets most of the time that the markets are open.
The first report of the week is the Conference Board’s Leading Economic Indicators (LEI) late tomorrow morning. This index attempts to measure economic activity over the next three to six months and can directly affect the bond market and mortgage rates. It is expected to show an increase from last month’s reading. The forecasted 0.2% rise would indicate moderate economic activity over the next few months, which is considered to be neutral news for the bond market.
The revised November reading to the University of Michigan Index of Consumer Sentiment will be posted late Wednesday morning. Analysts are expecting to see an upward revision to the preliminary reading of 92.3. The expected reading of 93.0 means that analysts think consumers were more optimistic about their own financial situations this month than previously thought. However, unless we see a significant variance from the forecasted reading, I don’t think this data will cause much movement in mortgage rates Wednesday.
Overall, I expect see bond trading get lighter as the week goes on as more traders head home for the holiday. If we get any significant surprises or unexpected news this week, bond prices will move more than usual due to the thin trading. But, if we see no surprises, it should be a fairly quiet week for mortgage rates.
Craig Higdon has over 14 years experience in financing commercial loans, small business loans, construction loans, and land loans. He owns Excelsion Mortgage, a commercial mortgage brokerage and consultancy offering real estate investors a wide range of resources to help them in their investment activities.
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Mortgage Loan Market Commentary
This holiday-shortened week brings us the release of only two factual economic releases. However, both of them are not likely to affect mortgage rates much. The bond market is expected to close early Wednesday and Friday and be closed the entire day Thursday in observance of the Thanksgiving Day holiday. In addition, I expect to see light trading in the financial markets most of the time that the markets are open.
The first report of the week is the Conference Board’s Leading Economic Indicators (LEI) late tomorrow morning. This index attempts to measure economic activity over the next three to six months and can directly affect the bond market and mortgage rates. It is expected to show an increase from last month’s reading. The forecasted 0.2% rise would indicate moderate economic activity over the next few months, which is considered to be neutral news for the bond market.
The revised November reading to the University of Michigan Index of Consumer Sentiment will be posted late Wednesday morning. Analysts are expecting to see an upward revision to the preliminary reading of 92.3. The expected reading of 93.0 means that analysts think consumers were more optimistic about their own financial situations this month than previously thought. However, unless we see a significant variance from the forecasted reading, I don’t think this data will cause much movement in mortgage rates Wednesday.
Overall, I expect see bond trading get lighter as the week goes on as more traders head home for the holiday. If we get any significant surprises or unexpected news this week, bond prices will move more than usual due to the thin trading. But, if we see no surprises, it should be a fairly quiet week for mortgage rates.
Craig S. Higdon, “The Investment Propert Insider”
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Craig Higdon has over 14 years experience in financing commercial loans, small business loans, construction loans, and land loans. He owns Excelsion Mortgage, a commercial mortgage brokerage and consultancy offering real estate investors a wide range of resources to help them in their investment activities.
This entry was posted on November 19, 2006, 9:31 pm and is filed under -Mortgage Loan Market Commentary. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.