News You'll Use

Mortgage rates rose this week as we saw progress in terms of the debt ceiling deal and saw U.S. stocks rise, taking bond yields higher as well. The news out of Washington is that both sides believe they can get a deal done sometime next week and miss a U.S. government default. There have been plenty of Federal Reserve speakers this week. Most speakers have been aggressive, saying that inflation is still too high and saying that there is a possibility of raising rates in June. The Fed has a stance of holding rates higher for longer to bring inflation down. The Fed will have a few more data points to watch come in before their June meeting, specifically the May jobs number and May CPI. For the time being, the Fed is data dependent and will dictate where rates go from here, that is assuming that we have a resolution to the debt ceiling and no further issues in the banking sector.

• U.S. 10-year Treasury closed at 3.64% on Thursday afternoon

• Retail Sales came in lower than analyst's expectations (+0.4% m/m vs expectations of +0.8% m/m)

• Housing Starts came in-line with analyst's expectations (1.401 million vs expectations of 1.4 million)

• Builder Permits came in below analyst's expectations (1.416 million vs expectations of 1.43 million)

• Existing Home Sales came in lower than analyst's expectations (-3.4% m/m m/m vs expectations of -3.2% m/m)

• Initial Jobless Claims came in lower than analyst's expectations (242k claims vs expectations of 251k claims)

• Mortgage Applications fell 5.7% this week