Updated on January 24, 2017 11:05:08 AM EST
Today’s only relevant economic data was Decembers Existing Home Sales at 10:00 AM ET. The National Association of Realtors announced a 2.8% decline in home resales last month. This was a larger decline than analysts were expecting, making the headline number good news for bonds and mortgage pricing. However, the drop in sales is being attributed to the smallest supply of available homes since 1999. Also, a sizable upward revision to November’s sales pushed them to the highest level since February 2007. The end result was a slightly negative impact on this morning’s bond trading and mortgage rates.
Tomorrow has no relevant economic data being released, but it does bring us the first of this week’s two relatively important Treasury auctions. The Treasury will auction 5-year and 7-year Notes tomorrow and Thursday respectively. If the sales are met with a strong demand from investors, the broader bond market may improve during afternoon hours. If they draw a lackluster interest, they could lead to bond selling and higher mortgage rates mid-afternoon tomorrow and/or Thursday.
Thursday has a couple of minor pieces of economic data to watch, but Friday brings the important reports. There will be three reports posted Friday morning that will likely influence mortgage rates. Two of them, Durable Goods Orders and the initial 4th Quarter GDP readings are considered very important to the financial and mortgage markets.
©Mortgage Commentary 2017