Updated on May 16, 2012 10:31:46 AM EDT EST Wednesday’s bond market has opened in negative territory following the release of stronger than expected economic data and more stock gains. The stock markets are showing another round of moderate gains with the Dow up 47 points and the Nasdaq up 12 points. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
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The Commerce Department kicked off today’s economic events with the release of April's Housing Starts early this morning. They announced a surprising jump of 2.6% in new housing construction starts that exceeded forecasts. The report also showed a sizable upward revision to March’s figures, creating a 9.6% increase between February and April. That is a decent sized increase, indicating housing sector strength, making the data negative for bonds and mortgage rates.
