Monday Market Commentary: Stock Market Selloff Helps Mortgage Rates

by Alex Stenback on July 30, 2007

July_30th_rate_chart
                                                                      Graphic Courtesy MSNBC
Last Week
With the Dow shedding 586 points on the week, some of that money flowed into mortgage bonds, which helped mortgage rates notch a slight improvement by the time markets closed on Friday.  Rates, however, are still testing the highs for the year.
This Week
Stock Market gyrations may have less effect on mortgage rates, as the bond market will have some real meat to digest in the form of several top level economic data releases scheduled for this week.  The big Ones: Tuesday’s PCE (personal consumption expenditure index) is a measure of inflation, and closely watched by the Fed.  Friday’s employment report also figures to be a prime mover.  Any data points showing inflation, or a strong economy, will put upward pressure on mortgage rates.
ยท This Week’s Economic Calendar [barrons]

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