Mortgage Market Update
Mortgage bond prices fell last week pushing rates higher. The data releases were mixed. ISM Index came in relatively neutral and did little to move the bond market. Unfortunately bonds backed up a bit heading into the employment report Friday. The cautious approach turned out to be correct as the August payrolls figures were revised sharply upward causing mortgage bonds to fall and rates to rise.
For the week, interest rates on government and conventional loans rose by about 1/4 of a discount point.
The retail sales and producer price index data Friday will be the most important events this week. The Fed minutes, trade data, and consumer sentiment data will also be important.