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Mortgage Rates (10/21/2010)

October 21st, 2010 4:20 PM by Lehel S.

Thursday's bond market has opened in negative territory following fairly neutral economic data and another round of early stock gains The Dow is extending yesterday's rally with a gain of 63 points this morning while the Nasdaq has gained 24 points. The bond market is currently down 8/32, which should push this morning's mortgage rates higher by approximately .125 of a discount point .



The Labor Department said this morning that 452,000 new claims for unemployment benefits were filed last week. This was close to forecasts and has not had much of an impact on this morning's trading or mortgage rates. A bit of good news was an upward revision to the previous week's claims, but it was not enough to offset this morning's selling that came as a result of stock buying.



The Conference Board reported late this morning that their Leading Economic Indicators (LEI) for September rose 0.3% last month, matching forecasts. This means it is predicting moderate economic growth over the next several months. That can be considered neutral news because analysts were expecting it and this data is not considered highly important.



There is no relevant economic data scheduled for release tomorrow, so look for the stock markets to again influence bond trading and mortgage rates. If the major stock indexes rise again, we should see more bond weakness and slightly higher mortgage rates. However, if the stock markets give back some of this week's gains, we could see rates improve a little. 
Posted in:General
Posted by Lehel S. on October 21st, 2010 4:20 PM

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