With nothing in the way of economic data to consider today, mortgage investors are looking to trading action in the stock markets for directional cues as they set rates. Falling stock prices will tend to support the prospects for steady to perhaps fractionally lower mortgage interest rates while rising stock prices will tend to drag rates fractionally higher.
Coming up next week -- Uncle Sam will dominate the calendar with a four-part Treasury auction running from Monday through Thursday. If the stock markets continue to trade lower capital will flow from these riskier asset classes into the relative safe-haven of the Treasury market - a process that will almost certainly prove to be at least mortgage market neutral - if not outright friendly.
The National Association of Realtors is scheduled to release its July Existing Home Sales report next Tuesday followed by the Census Bureau's release of the July New Home Sale figures on Thursday. Both home sales reports are expected to show little month-over-month improvement - a condition that will tend of be supportive of steady mortgage interest rates.
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