Market Commentary

Updated on May 7, 2024 10:08:12 AM EDT

There is again nothing of importance scheduled for release today that is expected to have an impact on mortgage rates. We are seeing the positive momentum in bonds extend into this morning’s session. With little driving this morning’s move, there is a decent chance of seeing a reversal again this afternoon.

Tomorrow also lacks a relevant economic release, but does have an afternoon event that is likely to influence bond trading and, quite possibly, mortgage rates. 10-year Notes will be auctioned tomorrow with results posted at 1:00 PM ET. If the sale is met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause a downward revision to mortgage rates. However, lackluster bidding in the sales, meaning longer-term securities are losing their appeal, could lead to higher mortgage pricing during afternoon trading tomorrow.

We also have three scheduled Fed speeches taking place tomorrow. None of the topics appear likely to yield a strong reaction in the markets. However, as with all speeches by current Fed members, there is the possibly of hearing something unexpected that draws a reaction. Two are set for 11:30 and 11:45AM. The third is scheduled for 1:30 PM ET.