30 June 2009 ? Today Consumer Confidence and Case-Shiller are impacting bonds in different directions. For starters the Case-Shiller Home Index Reading is a report that measures the home prices in the 20 largest US cities. The report is from April and showed fewer negative readings than prior reports, a slowing pace of decline in others, and actually some increases in the Dallas and Denver market. This may suggest the bottom of the housing is coming closer. Bonds were negatively impacted by this report and opened up this morning -44bps. However, the Consumer Confidence Report came out lower than expected at 49.3 versus 55.3 which gave bonds a needed boost. The bonds are currently only down 16bps which is an increase of 28bps since this morning. Stocks were positive but gave back gains on the Consumer Confidence Report news. Overall, while all economic news will impact both the stock and bond market we are seeing mortgage interest rates remain steady for the most part, ranging from 4.625% to 5.75%. The current 30-year mortgage rate is 5.125% with no discount or origination fee. The markets are closed on Friday and it should be a quiet Thursday with many traders leaving for the long holiday weekend.Email This Post To a Friend.
Consumer Confidence and Case-Shiller Pulling Mortgage Rates in Different Directions
June 30, 2009
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