Daily Commentary by Larry Baer: With
an empty economic calendar today mortgage investors will likely take
directional cues from stock prices as they set mortgage interest rates. Should stock prices trade notably higher look
for mortgage rates to remain steady to fractionally higher. It will likely take a rather sharp sell-off
in the stock markets to provide enough momentum to drag mortgage interest rates
lower from current levels.
Looking head to the coming week --
Wednesday's August New Home Sales figures and Thursday's trifecta of August
Durable Goods Orders, weekly jobless claims numbers and the final revision to
Q2 Gross Domestic Product will all be overshadowed by the Treasury Department's
three-part, $99 billion note auction schedule to run from Tuesday through
Thursday. $35 billion of 2-year notes
will hit the auction block on Tuesday, followed by $35 billion of 5-year notes
on Wednesday and the whole thing will wrap-up with the sale of $29 billion of
7-year notes on Thursday. Demand for all
three offerings is expected to be strong enough to avoid creating much, if any
upward pressure on mortgage interest rates.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
