New Homes Sales Down, Mortgage Rates Down
26 March 2007
Current Mortgage Outlook: Float.
Today the bond market opened positively after weaker than expected New Home Sales report for February. The stock market took losses, and we can expect to see an improvement of around .25 point to retail mortgage rates today.
February’s New Home Sales showed a decline of 3.9%. This was significantly weaker than the expected 6.1% increase. This is good news for the bond market and for interest rates.
Tomorrow we can expect to see March Consumer Confidence Index (CCI). This will give us a read on consumer’s willingness to spend, and is a closely watched report as consumer spending is of significant importance to the bond market and interest rates. A decline is expected, but an increase could bring about a rise in mortgage rates. Tomorrow brings with it a relatively strong possibility of interest rate volatility.
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