Tuesday, Friday the most likely volatile days for mortgage rates this week
30 July 2007
On Monday the bond market opened down with investors hedging their positions in anticipation of the economic news due out this week.
June’s Personal Income and Outlays data is due outﾃつ tomorrow and measures consumer spending.ﾃつ If we see increases this will affirm inflation risk and increase rates.ﾃつ Also tomorrow we’ll get the 2nd Quarter Employment Cost Index (ECI) which measures wage inflation and can also haveﾃつ a significant affect on mortgage rates depending on which way it goes.ﾃつ Finally, we’ll get theﾃつ Conference Board’s Consumer Confidence Index (CCI), which measures consumer willingness to spend and
The most important day of the week is Friday’s Employment report, but tomorrow, with three reports due could also be a very significant day.ﾃつ Due to the fact that the market is likely expecting the reports to be weak and not to indicate inflationary risk, the reality of the opposite reading could bring about a spike in mortgage rates.
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