Updated on September 2, 2014 11:12:04 AM EDT Tuesday’s bond market has opened well in negative ground despite a calm open in stocks. The major stock indexes are showing relatively minor gains with the Dow up 11 points and the Nasdaq up 16 points. The bond market is currently down 16/32 (2.39%), which should push this morning’s mortgage rates higher by approximately .250 of a discount point over Friday’s pricing (markets were closed yesterday due to holiday).
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The week’s economic calendar opened late this morning when the Institute for Supply Management (ISM) posted their manufacturing index for August at 10:00 AM ET. They announced a reading of 59.0 that exceeded forecasts of 56.9, indicating surveyed manufacturers were much more optimistic about business conditions last month than many had thought. That is bad news for the bond and mortgage markets because a strengthening manufacturing sector makes broader economic growth more likely.