MARKET COMMENT
Mortgage bond prices fell last week pushing mortgage interest rates higher. Inflation readings the first part of the week set the tone. Rates remained worse the middle portion of the week following the Fed meeting and significant stock strength. Fortunately that trend reversed the latter portion of the week helped by higher than expected weekly jobless claims and strong foreign demand for US debt. This helped mortgage bonds recover some of the earlier losses. For the week, interest rates on government and conventional loans rose by about 3/8 of a discount point.
The consumer price index Thursday will be the most important event this week. Be cautious heading into the other data releases as they still have the potential to result in market volatility.