Mortgage rates are worse this morning compared to Friday morning but most of that is due to losses in the bond market on Friday.
This morning the Commerce Department reported that consumer spending was in line with analysts’ expectations in July. The report also showed that personal incomes grew by less than expected. In addition, the Personal Consumption Expenditure Price Index, which is the Fed’s favorite gauge of inflation, continued to show that inflationary pressure remains tepid. Overall, the report is interest rate friendly.
Central bankers in Japan made a surprise announcement overnight that they would offer another round of stimulus to help the economy their grow. Over the past few months the Japanese Yen has strengthen against other currencies making their export-driven economy more expensive.
Current outlook: neutral