Updated on May 28, 2015 10:13:47 AM EDT Thursday’s bond market has opened flat despite early stock weakness. The major stock indexes are showing noticeable losses with the Dow down 72 points and the Nasdaq down 20 points. The bond market is currently down 1/32 (2.13%), but strength late yesterday should improve this morning’s mortgage rates by approximately .125 of a discount point if comparing to Wednesday’s morning pricing.
OpenClose Mortgage Software
We saw strength in bonds late yesterday that caused some lenders to improve rates slightly. A pretty strong 5-year Treasury Note auction likely contributed to some of the improvement but not the sole cause. However, the decent level of investor demand in the 5-year securities helps to be optimistic about today’s 7-year Note sale. Results will be posted at 1:00 PM ET, so any reaction to the auction will come during early afternoon hours. The stronger demand for the securities, the better the chance we will see mortgage rates improve.