Yesterday saw mortgage rates hold steady near all time historical lows despite potential volatility due to the events going on in the Eurozone. The market can and will move on news coming out of Europe, but is moving less on general speculation. There is a high chance of more sideways movement until later in the week due to European Summit and Supreme Court ruling.
Key Events With The Potential To Move Mortgage Rates
European Summit Commences Tomorrow
The European Summit commences tomorrow in Brussels and ends on Friday. Market watchers will be keeping a close eye on any commentary coming out of the summit. Good or bad news has the potential to move mortgage rates.
The bottom line is that things are not going well in Europe and market watchers want to know if we’ve seen the worst already Europe, or if there is more pain to come. The health of the European banking system and Europe as a whole, plays a vital role in where current US mortgage rates are.
Supreme Court Health Care Ruling
Tomorrow will see the Supreme Court’s ruling on healthcare. While this event certainly has the potential to move mortgage rates, it’s difficult to know which way. Which way the ruling goes and how the market reacts will determine if and how mortgage rates move, but since this is an unusual event, unlike regularly scheduled economic data, gauging what market reaction might be is difficult.
Pending Home Sales and New Home Sales Updates
New home sales data that was just released shows that new home sales increased 7.6 percent last month, to a seasonally-adjusted annual rate of 369,000 homes sold. This data disappoints as it is short of the 700,000 home sales that economist target as the number of home sales a healthy market should have.
Pending home sales data was also recently released showing that pending home sales rose 5.9% from April to May after a 5.5% decrease from March to April. Market watchers were expecting a 1.2% increase.