Updated on May 21, 2018 10:18:39 AM EDT
There is nothing of importance scheduled for release today or tomorrow. The rest of the week brings us four pieces of economic data that may impact mortgage rates in addition to two Treasury auctions and the minutes from the latest FOMC meeting. None of the events are considered key or expected to be a market mover, but most of the reports carry enough importance to affect mortgage pricing if they show a decent sized variance from forecasts.
The first events of the week will come Wednesday when Aprils New Home Sales report is posted, the minutes from the most recent FOMC meeting are released and the 5-year Treasury Note auction concludes. The housing report will be posted late morning while the other two events will take place during afternoon trading Wednesday.
Friday is the most important day of the week with two pieces of data being released, including the most important report of the week. Wednesday may also be pretty active with three events scheduled. Last weeks bond volatility pushed the benchmark 10-year Treasury yield above level of 3.0%, closing at 3.06%. This was the highest we have seen in almost 7 years, bringing mortgage rates upward also. There is nothing set this week that is likely to rally bonds enough to break below 3.0%. That leaves us in a position that means mortgage rates are at risk of moving higher before they move much lower. Therefore, please proceed cautiously if still floating an interest rate and closing in the near future.
©Mortgage Commentary 2018