Updated on December 22, 2014 10:29:24 AM EST Monday’s bond market has opened in negative territory despite weaker than expected housing data. The soft opening in bonds is likely due to early stock gains that have the Dow up 77 points and the Nasdaq up 10 points. The bond market is currently down 5/32 (2.17%), but due to strength late Friday, we should see an improvement of approximately .125 of a discount point in this morning’s mortgage rates if comparing to Friday’s early pricing.
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November's Existing Home Sales was today’s only relevant economic report, coming at 10:00 AM ET. The National Association of Realtors reported that home resales fell 6.1% last month to their weakest level since May of this year. That was a much larger decline than analysts were expecting to see, indicating the housing sector was softer than many had thought. Therefore, we should consider the data favorable for the bond and mortgage markets.