Rates are effectively unchanged again this morning.
Looking ahead this week the biggest piece of economic news will be delivered tomorrow when the Producer Price Index (PPI) report is released. This report, which indicates inflationary pressure at the wholesale level of our economy, is likely to come in “hot” as did the CPI from last Thursday.
The question remains to be seen how the market reacts. Despite high inflationary figures reported in the CPI mortgage rates have yet to be pressured higher probably because oil and commodity prices have eased thus far in the month of August.
For now we’ll shift our outlook to neutral.