Friday, October 22, 2010

Friday's Market UpDate

Friday's bond market has opened fairly flat following a mixed open in the stock markets. The Dow is showing a 17-point loss while the Nasdaq has gained 13 points. The bond market is nearly unchanged from yesterday's close, meaning we should see little change in this morning's mortgage rates.

There is no relevant economic data scheduled for release today, so we should be looking towards the stock markets for guidance on bond trading. If the major stock indexes move upward from current levels, we may see some pressure in bonds that could lead to a small increase to mortgage pricing this afternoon. If stocks head lower during afternoon trading, we could see an improvement to mortgage rates later today.

Next week brings us the release of a handful of economic reports that have the potential to affect mortgage rates, including the extremely important initial reading of the 3rd Quarter Gross Domestic Product. There ar e also two Treasury auctions that may influence bond market sentiment and lead to changes to mortgage rates in the middle of the week.

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