Market Commentary: It will be a busy holiday shortened
week in the mortgage market.
Investors will be watching the economic data closely as they
look for clues that suggest the U.S. economy is either simply
traversing through a soft patch – or slipping back into a
recession.
Thursday’s revised Q1 Gross Domestic Product numbers
and the detail contained in the April Personal Income and
Spending report have the greatest potential to tilt the trend
trajectory of mortgage interest rates one way or the other this
week.
The three-part Treasury debt auctions scheduled for
Tuesday through Thursday will likely be the “wild card” with
respect to the mortgage market.
Solid demand for all three offerings will tend to support
steady to perhaps fractionally lower mortgage interest rates.
Should one or more of this week’s debt sales show
disappointingly weak demand – it will likely spook the heck
out of mortgage investors – and that is a condition almost
certain to cause note rates to creep higher.
