Calm week, kind of boring actually

Another boring week as bonds trade in very narrow ranges

Happy Friday from Local Mortgage!

It was another very mild, somewhat boring week for mortgage markets, at least as actual data is concerned. Hardly any change to rates at all, so we will end the week still at 6.125% for our best 30-year fixed conventional scenario.

Tuesday’s Consumer Confidence numbers were pretty close to expectations and Friday’s somewhat anticipated PCE Index offered no surprises. The PCE or Personal Consumption Index is a broad, highly regarded inflation indicator for policymakers, but it comes about 2 weeks after its counterpart, the Consumers Price Index, so it’s much easier to predict. With today’s PCE Index matching expectations, the markets had little to no reaction, leaving rates right where we started the week.

Next week, we will get the ISM manufacturing index on Tuesday, the services sector index on Thursday and the key employment report on Friday. So, we will have a short week with the Labor Day holiday and could see some rate movement based on the employment report next Friday.

Hope everyone has a good long weekend. Thank you for reading.