Rate Update for August 28th, 2008
Mortgage rates are unchanged today.
Better than expected Gross Domestic Product numbers for the 2nd quarter is helping the stock market this morning which is pressuring bonds. This marks the second consecutive day in which economic data has exceeded analysts’ expectations. Typically good news for the economy is bad news for interest rates so we’ll have to watch and see what happens today.
Traders may reluctant to make any major moves today because tomorrow we get the Personal Consumption Expenditure (PCE) report which includes the Fed’s favorite gauge on inflation. Should this report also indicate that price pressures are hotter than expected we will likely see rates move higher in the near term. If inflation pressures have moderated we may see rates move even lower.