Good Morning on this best day of the week Wednesday, from your Hometown Lender,

There is no economic data to help or hurt rates until Friday’s PCE inflation data comes out…

And even that is more of a “meh” type thing. The PCE is the Fed’s favored gauge of inflation, but unless it were to come out surprisingly low or surprisingly high, don’t expect much of a reaction from markets (meaning don’t expect much of a reaction in rates either).

What we do have is a lot of Fed speakers, Thursday’s initial Q2 GDP reading, and a note auction or two.

We’ll also get consumer sentiment readings on Friday, another “meh” report.

Rate sheets this morning once again treading water as early losses wash out yesterday’s gains for mortgage bonds. The reality is that rates are not really moving much one way or the other and haven’t in a couple of weeks. That’s not likely to change the rest of this month, with the best shot at seeing bigger moves coming with October’s BLS labor data on 10/4.

A lot of the losses we see in bonds have been caused by overseas trading and other markets, and shouldn’t cause any real concern. The outlook is still good that rates will improve heading into October. Although that could always change, that’s why most loans will continue to benefit from floating.

Stay safe and first make today great!