The Week in Review:
It was a mixed bag of economic news during the week. Existing home sales are up and inflation is still in line with expectations. These signs are good for the economy. However, initial jobless claims were a bit higher than expected. Overall, home loan rates ended the week just slightly higher than they started.
What to expect:
This week there are several reports set for release. The biggest of which are the Consumer Confidence Report and Personal Consumption Expenditure (PCE) Index. If consumer confidence is rising, it is more likely the consumer will spend their money. The PCE Index is the Fed’s favorite gauge on inflation. Keeping inflation low is important for maintaining a low interest rate environment.
Also, Tuesday through Thursday of this week there will be another round of Treasury auctions which could cause volatility depending on how they are received.
Breg-ometer:
Next 7 days: No significant changes
Next 30 days: Daily volatility; Rates should still remain in the same range
Next 90 days: Neutral
Courtesy:
Bob Bregitzer
Southeast Mortgage
[where: 30339]