Today's Mortgage Market at a Glance

Updated on February 27, 2024 10:07:06 AM EST

 

Tuesday’s mortgage rates should be higher by approximately .125 of a discount point due to late bond losses yesterday. The bond market is currently down 1/32 (4.28%).

Stocks are mixed with the Dow down 137 points and the Nasdaq up 15 points.

Yesterday’s 5-year Treasury Note auction drew mixed demand from investors. The bond market had already weakened before results were announced at 1:00 PM ET, but they did lose a little more ground shortly after. Accordingly, we can attribute some of yesterday’s afternoon weakness and upward change in rates to the auction.

January's Durable Goods Orders report was posted at 8:30 AM ET this morning. It indicated new orders for big-ticket items such as airplanes, appliances and electronics fell 6.1% last month when a 4.4% decline was expected.

Also in the good news column was a secondary reading that excludes more volatile and costly transportation-related orders (airplanes). It fell 0.3% when analysts had predicted a 0.3% rise.

Today’s second report was February's Consumer Confidence Index (CCI) at 10:00 AM ET. The Conference Board announced a reading of 106.7 that was well below forecasts of 114.6. A downward revision to January’s reading is softening the impact January’s number is having on the markets this morning. The decline means surveyed consumers were not nearly as confident in their own financial situations and are less likely to spend.

The results of yesterday’s Treasury sale prevent us from being overly optimistic about today’s 7-year Note auction. We will get today’s results at 1:00 PM ET also, making this an early afternoon event for mortgage rates. A strong demand from investors could lead to bond gains and lower mortgage pricing later today.

Tomorrow brings us the first revision to the 4th Quarter Gross Domestic Product (GDP) reading at 8:30 AM ET. This is the second version from last quarter and is expected to show the economy grew at a 3.2% annual rate over the last three months of the year, down slightly from the initial estimate of 3.3%. Because bonds are more attractive to investors during times of economic weakness, good news would be a noticeable downward revision.

Visit our Daily Commentary page on our site for detailed explanations on current news that is relevant to mortgage rates.

 


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If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

 ©Mortgage Commentary 2024



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