Monday’s bond market has opened in positive territory with stocks mixed and favorable economic news coming from overseas. The Dow is currently down 19 points while the Nasdaq has gained 8 points. The bond market is currently up 3/32. The net result should be this morning’s rates being very close to Friday’s morning pricing.
There is nothing of importance scheduled to be posted today, so stocks are contributing to this morning’s bond gains. The rest of the week brings us only three pieces of relevant economic news in addition to the minutes from the most recent FOMC meeting. None of the economic data is considered to be highly important to the markets and mortgage rates, but they do carry enough significance to influence mortgage rates if they show a wide variance from forecasts.
The first event of the week comes late Wednesday when the minutes of the last FOMC meeting will be released. The other reports worth watching are April’s Existing Home Sales and Leading Economic Indicators (Thursday) and April New Home Sales (Friday). Until we get to these events, look for stock movement to drive bond trading and mortgage rates.
Overall, I believe Thursday will be the most important day for rates, although Friday should be active also as it will be shortened due to the early close ahead of the Memorial Day. I suspect that tomorrow will be the calmest day of the week.