Mortgage rates worsened by roughly .25% in the benchmark 30 year fixed conforming market. This was mostly the result of better than expected series of economic and high profile earnings reports, which gave stocks a boost, and hurt mortgage and other bonds. Persisent concerns over inflation also seemed to weigh-down the bond markets.
The rather light economic calendar leaves the markets without the rudder of fresh data to steer by until Wednesday. The calendar also lacks heft this week, containing mostly second tier reports. Look for bonds tp take direction from stocks – rallying stocks will often take money out of bonds, and cause rates to worsen. Existing and new home sales bear watching as investors, wishfully in our opinion, look for an early bottom in real estate.