A nice start to the week with the 10 yr note yield opening down from last week, currently at 1.93%. Mortgage pricing will start off better as well. Stock indexes are starting weaker after the Dow was unable to stay above 13k last week and more negative news coming out of Europe. As stocks drop investors move into bonds driving rates a little lower on the increased demand. Keep an eye on the Dow, if it makes another crack at 13k and can stay above it we could see rates creep back up again.
Wow, as I’m preparing this, better than expected January home sales data just released has caused the Dow to surge right back up to 13k. Good news for the housing recovery and giving investors confidence outweighing the negative news coming from Europe after the Group of 20 Nations deflected requests from the European Union to boost international lending. For now the 10 yr note is holding at 1.93%.