San Diego Home Mortgage Blog

Nothing to report today; the bond and mortgage markets are closed for the Columbus Day holiday. Most markets are closed, but the stock market is not. The DJIA at 10:30 +521, NASDAQ +12, and the S&P +6.

Last Thursday and Friday interest rates spiked higher on the poor 30 yr bond auction and increasing belief that the economy will continue to climb out of its huge hole. Interest rates had declined to levels we believe will be a hard sell to decline more from the lows seen last week.

This week economic reports start flowing on Wednesday and continue through the rest of the week.

We continue to suggest keeping locked and not float. Tomorrow (Tuesday) and the rest of the week will be marked with increased volatility; possibly a little retracement after the hit last week, but any rallies now will be seen by traders as a selling opportunity.. We will work it however, and given the opportunity we will take advantage of it. However, the price declines last week have turned the technical outlook more bearish. Looking for a wide trading range to develop between 3.50% on the 10 yr note (closed Friday at 3.38%) and 3.25%. Mortgage rates are likely to swing within a 20 to 25 basis points range following along with the bellwether 10 yr note.