MARKET COMMENT
Mortgage bond prices rose last week pushing mortgage interest rates lower. Stronger than expected producer price index data was overlooked as oil prices remained lower the beginning of the week which eased inflation fears. Unfortunately oil prices spiked higher towards the end of the week with a $6/barrel swing on Thursday alone. Traders were concerned about international political tensions with Russia.
For the week, interest rates on government and conventional loans fell by about 1/8 of a discount point.
The preliminary gross domestic product data Thursday will be the most important event this week. The bond market closes early Friday in advance of the Labor Day Holiday. The shortened trading week may lead to market volatility.