Mortgage Blog

This week brings us the release of six relevant economic reports
in addition to another FOMC meeting.

1)Tuesday. Employee Productivity and Costs data for the second quarter.
It will give us an indication of employee output. High levels of
productivity are believed to allow the economy to grow without
fears of inflation. It will not affect mortgage pricing too much.

2)Wednesday. June's Trade Balance report will be released;
Auction of 10-Year Notes.

3)Tuesday-Wednesday. The FOMC meeting.
It is expected to yield no change to key interest rates. Usually,
the post-meeting comments seem to have more of an influence on
the markets than the rate adjustments themselves, or a lack of
one in many cases.

4)Thursday. July's Retail Sales data& 30-Year Bnds Auction.
This data is very important to the financial markets and mortgage
rates because it helps us measure consumer spending. Since consumer
spending makes up two-thirds of the U.S. economy, any data related
to it can cause a fair amount of movement in the markets. A smaller
than expected inc rease would indicate that consumers are spending
less than previously thought, potentially slowing the economic recovery.
This is good news for the bond market and mortgage rates as it eases
inflation concerns and makes long-term securities such as mortgage-related
bonds more attractive to investors. Current forecasts are calling for
an increase of 0.7%.

5)Friday. Three Reports: July's Consumer Price Index (CPI);
Industrial Production data for July; Index of Consumer Sentiment
for August.