Mortgage rates are better this morning.
Although rates are better this morning than they were yesterday morning it looks like they may move temporarily higher on better than expected economic data and a looming 30-year bond auction.
Retail sales in June were better-than-expected according to this mornings report released by the Commerce Department. Analysts had been expecting a modest contraction and the figure came in at +.1%.
In a separate report weekly jobless claims came in lower than expected which is a good sign for the jobs market. However, last weeks report also came in lower than expected and was trumped by the weak monthly jobs report the next day.
The US Treasury will deliver $13 billion in 30-year bonds today. The added supply of longer duration securities is helping to pressure interest rates higher.
Lastly, the Labor Department reported the latest figures for the Producer Price Index (PPI), which is an indicator of inflationary pressure at the wholesale level of the economy, that showed modest price growth. The markets are shrugging their shoulders at this report. Tomorrow the Consumer Price Index (CPI) is released.
Current Outlook: neutral