Reports to Watch

The week is full of key economic data from a variety of sectors.

• Manufacturing data serves as the bookends for the week, kicking off on Monday with Durable Goods Orders followed by the Chicago PMI on Friday.
• Consumer Confidence will be released on Tuesday followed by the Consumer Sentiment Index on Friday.
• Pending Home Sales will be delivered on Wednesday.
• Thursday brings the final read on first quarter Gross Domestic Product along with weekly Initial Jobless Claims.
• And last but not least, the Fed’s favorite inflation gauge, Core Personal Consumption Expenditures (PCE), will be released on Friday along with Personal Income and Personal Spending.

X Factor

The Bureau of Economic Analysis will release May Core PCE data, which is an important metric for both the economy and to members of the Federal Reserve.

Core PCE measures the prices paid by consumers for goods and services to reveal underlying inflation trends without the volatility caused by movements in food and energy prices.

Core PCE is currently running at 1.5 percent on an annual basis as of April. That is below the Fed’s target range of 2.0 percent and the poorest level recorded since December 2005.

If inflation continues to be subdued, home loan rates will continue to hover just above all-time lows, and the Fed may not be in a hurry to raise the short-term Fed Funds Rate again anytime soon.

As always, stay tuned to Mortgage Market Guide for the latest.

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