The Veridian Blog

The dual inflation reports arrived slightly higher than expected last week but were overshadowed by new levels of weakness found among equity traders.  Widespread market malaise and fear eventually sent investors towards bonds and helped lower interest rates by week’s end.  Sellers are again dominating the action today as all major indices are hitting fresh new lows once more.  In light of the strong sell-offs, we anticipate mortgage rates to improve today, or in the next few days.  There’s plenty more in store this week to potentially sway rates one way or another: consumer confidence, existing home sales, durable goods and Chairman Bernanke will give the Fed’s semi-annual testimony tomorrow morning.