Updated on May 22, 2020 10:16:47 AM EDT
There is nothing of relevance scheduled for release today. If we see a noticeable move in bond yields or an intraday revision to mortgage rates it will likely be a result of a move in stocks. Generally speaking, stock strength hurts bond prices, pushing yields and mortgage rates higher. On the other hand, if the major stock indexes extend this morning’s losses, we could see a slight improvement in rates before today’s early close in bonds.
The bond market will close at 2:00 PM today while stocks are set to trade a full session. All the U.S. markets will be closed Monday for the Memorial Day holiday and will reopen for regular trading Tuesday morning. It is common to see a little pressure in bonds and mortgage related securities ahead of a long holiday weekend such as this one. That is usually caused by traders selling some holdings ahead of the holiday to protect themselves from events over the extended break.
Next week has a fairly large number of economic reports and other events scheduled that may influence mortgage rates. Some of the data is of less importance than others but there is at least one item scheduled each day, including Tuesday when the markets reopen. Look for details on the week’s calendar in Sunday evening’s weekly preview.
©Mortgage Commentary 2020