- The first report won't be released until Thursday with the weekly Initial Jobless Claims report. Last week, claims fell by 27,000, which was the largest weekly decline since May 2011.
- On Friday, inflation at the wholesale level will be released in the form of the Producer Price Index (PPI). Last week it was reported that the year-over-year Core Personal Consumption Expenditures (PCE) rose to 2%, the high end of the Fed's range.
- The last report on Friday will be the first reading on Consumer Sentiment for May.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart above shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.
When you see these Bond prices moving higher, it means home loan rates are improving — and when they are moving lower, home loan rates are getting worse.
To go one step further — a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.