Mortgage bond prices opened higher Tuesday morning applying downward pressure to mortgage rates. Rates are finding support following an incident where North and South Korea exchanged artillery fire overnight. In times of global uncertainty, traders seek the safety of US debt. This is call flight to safety buying. Lets hope the US is always seen as a safe place to park money.
In news released this morning, the US economy expanded at a 2.5% rate in the third quarter. This data was near expectation for a read of 2.4% and had no effect on trade.
Market analysts are now waiting for stocks to begin trade at 9:30 am ET and for the release of existing home sales data set for 10:00 am ET to help gauge interest rate direction. This afternoon the Treasury will auction $35B in 5-year notes with results by 1:15 pm ET.