Good Friday AM from your Hometown Lender,

The biggest data set of the week is this morning’s PCE report. It came in matching expectations at 2.6% and is the smallest annual increase since 2021. Bonds took a bit to react and have since made some nice gains pushing the 10-yr note down to 4.23% and mortgage bonds up about 20 bps as expectations for additional Fed cuts increase.

Personal Income was up more than expected but Personal Spending fell off a cliff.

That coincides with the weak Consumer Confidence and Consumer Sentiment numbers. Consumers know the economy is slowing.

The yield curve is back to inverted.

Next week will be a big week for rate sheets as we have a lot of data through the week with Friday bringing the jobs report. This rally will either pull back or catch fire on markets’ reaction to the data.

The U.S. Census Bureau reported that newly built home inventory stood at 495,000 in January, representing a 9-month supply at the current sales rate and the largest amount since 2009.

Stay safe, enjoy the weekend and first make today great!!!