Wednesday’s bond market has opened relatively flat despite economic news that was highly unfavorable for bonds and mortgage pricing. The stock markets are showing gains with the Dow up 49 points and the Nasdaq up 13 points. The bond market is currently down 3/32, but I don’t believe we will see to much of a change in this morning’s mortgage rates.
January's Housing Starts was the first of this morning’s three pieces of economic data. It revealed a sizable jump in starts of new home construction, indicating future housing sector strength is possible. The 14.6% increase in housing starts greatly exceeded forecasts, but fortunately this data doesn’t usually have a significant influence on the markets and mortgage rates or we would have seen a noticeable increase in this morning’s pricing.