Updated on April 22, 2025 10:09:57 AM EDT
Today has no relevant economic data or other related events scheduled. This morning’s bond gains may be a result of news from the International Monetary Fund (IMF) conference that their economists are predicting tariffs will have a severe negative impact on the global economy. Generally speaking, weaker economic conditions tend to make bonds more appealing to investors as long as inflation is not rising.
There are three items on tomorrow’s calendar, starting with March’s New Home Sales report at 10:00 AM ET that will tell us how many newly constructed homes were sold. However, since it covers only the small portion of all home sales in the U.S., it requires a wide variance from expectations to affect mortgage rates. Analysts are predicting a slight increase from February’s sales.
Tomorrow’s other two events will come during afternoon trading. The first is the results announcement of the 5-year Treasury Note auction at 1:00 PM ET. These types of sales don’t directly impact mortgage pricing, but if investor demand for the securities is overly strong or soft, they can cause movement in the broader bond market. A strong demand from investors could lead to a slight improvement in mortgage rates before the end of the day, while a lackluster interest may cause a minor upward revision to mortgage pricing.
The second afternoon event tomorrow will be the release of the Federal Reserves Beige Book report at 2:00 PM ET. It is named simply after the color of its cover but provides opinion from business contacts on economic conditions throughout the U.S. by Fed region. Since the Fed relies heavily on the contents of this report during their FOMC meetings, its results can have a moderate impact on the financial markets and mortgage rates if it reveals a significant surprise. Of particular interest is feedback about prices (inflation), spending and how tariffs are affecting activity. If there is a reaction, it will come during mid-afternoon trading tomorrow.
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