Updated on July 29, 2014 11:08:32 AM EDT Tuesday’s bond market has opened in positive territory despite a surprisingly strong piece of economic news. The stock markets are showing noticeable gains with the Dow up 64 points and the Nasdaq up 22 points. The bond market is currently up 5/32, which may improve this morning’s mortgage rates by approximately .125 of a discount point.
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Today’s only important economic data came from the Conference Board at 10:00 AM ET. They announced their Consumer Confidence Index (CCI) rose to 90.9 in July, exceeding forecasts of85.6 and June’s revised reading of 86.4. This means that surveyed consumers were much more optimistic about their own financial and employment situations than many had thought. That makes the data negative for the bond market and mortgage rates because rising confidence usually means consumers are more apt to spend money, fueling economic growth. However, even though stocks are reacting as expected to the news, bonds don’t seem to be too concerned about the data at the moment.