An extremely light week following the FOMC, with the only note-worthy reporting being the Consumer Sentiment reports from the University of Michigan, which gives a long term outlook of the consumer on the economy. The report has come in well under expectations, much more so than any previous release in the last 6 months. This is largely due to the increase in the cost of living for every sector.
Consumer Sentiment
The University of Michigan’s gauge of consumer sentiment fell to 67.4 in a preliminary May reading, down from 77.2 in the prior month.
Primary Mortgage Market Survey Index
- 15-Yr FRM rates are seeing a decrease by -0.09% with the current rate at 6.38%
- 30-Yr FRM rates are seeing a decrease by -0.13% with the current rate at 7.09%
MND Rate Index
- 30-Yr FHA rates are seeing a -0.08% decrease for this week. Current rates at 6.62%
- 30-Yr VA rates are seeing a -0.08% decrease for this week. Current rates at 6.64%
Jobless Claims
Initial Claims were reported to be 231,000 compared to the expected claims of 214,000. The prior week landed at 208,000.
What’s Ahead
Next week we’re expecting new rounds of inflation data from CPI and PPI reports. Given the current data that has been released, the inflation problem is expected to still be a small sticking issue.