Mortgage Rates Quiet

Here we go again. Since the middle of last week, we have seen the bond markets either start off on a slightly positive note, or a negative note – only to see that there is no follow through before it subsides back to a flat line.  This morning it is up, but nothing to jump up and down.  What we are seeing now is just a little movement, if any, that affect the fees associated with the rates that are quoted.

Initial Weekly Jobless Claims hit 241K vs estimate of 240K. The more closely watched 4-week moving average moved from 243,250 to 244,750 which is an extremely low trend line. Continuing Claims were 1.944M vs estimate of 1.928M.

The April FHFA Home Price Index jumped by 0.7% which was almost double the market forecasts of 0.4%. March was revised upward from 0.6% to 0.7%.

Leading Economic Indicators May reading is expected to match April's pace of 0.3%.  Outside of this, there is nothing more on the economic calendar today.

Crude oil started slightly higher but nothing that would imply that the price will reverse and begin to increase.  Most oil traders are expecting the price to fall below $40.00 from the current $42.86.

Unless the stock indexes come under heavy fire today, the bond and mortgage markets will likely trade quietly again today.  I am still bullish and expect further rate declines, but presently the bond market is consolidating the recent declines and awaiting new news and information that is lacking this week.  Continue to cautiously float and stay alert.