AM Market Update!!

 

Friday’s bond market initially opened in negative territory yet again following stronger than expected economic data, but has since rebounded into positive ground. The stock markets are reacting favorable to the same data, pushing the Dow up 63 points and the Nasdaq up 18 points.

Today’s only relevant economic data was the second and final revision to the 3rd Quarter Gross Domestic Product (GDP) early this morning. It showed an upward revision from the previous estimate of a 3.6% annual rate of growth to a 4.1% pace, meaning the economy was stronger during the last quarter than many had thought. It was also the highest quarterly gain since the 4th quarter of 2011. That is clearly bad news for the bond market and mortgage rates because a strengthening economy makes long-term securities such as mortgage-related bonds less appealing to investors. Fortunately, this data is a bit aged at this point and traders are more interested in the current quarter’s activity that will be released next month, helping to prevent a significant jump in rates.

Next week brings us the release of a handful of economic reports that are relevant to mortgage rates. It also starts the two week holiday schedule with an early and holiday closure in recognition of Christmas and New Year’s Day. We do have data scheduled to be posted Monday that could influence the markets and mortgage rates. November’s Personal Income and Outlays report and December’s revised University of Michigan Index of Consumer Sentiment will both be released Monday morning. Look for details on next week’s calendar in Sunday’s weekly preview.

 

The damage is done so if you have not locked your interest rate then look to lock in after Christmas. For Mortgage & Real Estate related news please follow my BLOG.