New Home Sales
Also tomorrow will be the first of this week's two potentially relevant Treasury auctions. There will be an auction of 5-year Notes tomorrow followed by 7-year Notes Tuesday. Neither of these sales will directly impact mortgage pricing, but they can influence general bond market sentiment. If the sales go poorly, meaning weak investor demand, we could see broader selling in the bond market that leads to upward revisions to mortgage rates. However, strong sales usually make bonds more attractive to investors that brings more funds into the bond market. This often translates into lower mortgage rates. Results of the sales will be posted at 1:00 PM ET each auction day, so look for any reaction to come during early afternoon hours.