Today doesn't have anything scheduled that we need to be concerned about. It is not surprising that we are seeing bonds open in negative ground since stocks are up. This is a pattern that we will likely see over the next couple weeks. Stock gains generally cause bond prices to move lower, leading to higher yields and an upward move in rates. When traders are selling stocks, bonds are often the beneficiary as investors look for safety from the volatility. As funds come into the bond market, bond prices rise and mortgage rates improve.
Don't fall too complacent with this morning's markets and mortgage pricing. There is a good chance of stocks reversing course or extending this morning's gains before the end of the day. In other words, we may see an intraday revision to rates sometime today.
Next week has several economic reports that are considered to be moderately to highly important for the markets to digest. Monday's calendar is empty, meaning we can expect weekend headlines to drive trading (if there is any relevant news). The most important reports, including the FOMC minutes, come mid and late week. Look for details on all of the next week's activities in Sunday evening's weekly preview.
©Mortgage Commentary 2022
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of Horizon Credit Union.