Mortgage bond prices opened lower Wednesday morning addling to the losses seen Tuesday afternoon. Rates are under pressure from strong economic data released this morning.
In news released at the open, orders for durable goods rose 3.3%. Traders were expecting orders to rise 1.8%. That data was sharply higher than expectations and not bond friendly.
Traders are now waiting for stocks to begin trade at 9:30 am ET and for the release of new home sales data set for 10:00 am ET. Also, this afternoon the Treasury will auction $35B in 5-year notes with results by 1:15 pm ET.
Why are rates under pressure? It comes from a variety of things including; what will happen during the election next Tuesday, what will the Fed do next Thursday, is inflation going to creep back or skyrocket and what is going with the economy and housing markets. Bond traders hate uncertainty and will take their money off the table when they get nervous.
Contact your Portland, Maine Mortgage Broker today for more info.
Today the yield on the 10 year Treasury Bond is up sharply over last week and Maine Mortgage Rates have come up with it. There was a weak 5 year auction yesterday (pushing yields higher) and there is a 10 year Treasury Bond auction today (pushing yields higher). Traders expect bond yields to retract as we approach the November Fed meeting and keep mortgage rates low.
I would recommend floating any new mortgage applications and wait for pricing to improve. This also allows for your lender to lock at a much shorter rate lock period after receiving appraisal. Contact your Maine Mortgage Broker or Banker for details and advice.