Week in Review

Mortgage bond prices rose this week pushing interest rates slightly lower.  Tame inflation readings helped to counter the better than expected weekly jobless figures.  Core producer and consumer price data was generally bond friendly.  The Philadelphia Fed report showed tremendous weakness in that region.  Industrial product and capacity use data also came in below estimates, which helped rates improve. The Fed meeting on Tuesday will be the most important event this coming week.  The housing data the beginning and end of the week can result in mortgage interest rate movements.  Expect more volatility, as stocks and bonds are likely to continue their back and forth trading pattern.