First quarter economic growth is expected to be weak when reported at week's end.
- Housing data this week comes from the S&P/Case-Shiller Home Price Index and New Home Sales on Tuesday. Pending Home Sales will be released on Thursday.
- Consumer Confidence will be released on Tuesday followed by the Consumer Sentiment Index on Friday.
- Durable Goods Orders and weekly Initial Jobless Claims will be delivered on Thursday.
- On Friday, Gross Domestic Product and the Chicago PMI will be released.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.
When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.
To go one step further, a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes are on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.
As you can see in the chart below, Mortgage Bonds reached their best levels of the year in recent days, keeping home loan rates near historic lows.