Mortgage Rates Quiet Before FOMC Statement Tomorrow

Mortgage rates are moving sideways so far today as it seems like we have another quiet open in the bond market.  This morning we got the May NFIB Index matched April's reading which is at a very high level. Hiring activity in May just missed the highest level in 43 years.

When it comes to inflation, the May Producer Price Index showed that the YOY (year over year) Core (ex-food and energy) climbed back above the important 2.0% with a reading of 2.1%. The Headline reading YOY came in at 2.4% vs est of 2.3%. Tomorrow May Consumer Price Index will be more important.

At noon, the Treasury will have the 30-year bond auction today that will need be very closely watched.

The Fed started their two days of closed-door meetings today as the market awaits tomorrow's rate decision.

Current Attorney General Jeff Sessions will testify before a Senate committee as the Russian investigation continues.  He asked that this hearing be made public – hence anther TV Special.  The probe on the Russian involving the election continues to sputter, so far no real facts that have any substance.

Oil prices are falling as OPEC's production report showed a huge spike in output even after they agreed to freeze production levels and another report in the U.S. showed that oil produced from Shale is on pace to set a record.

I am expecting mortgage rates to trend slightly worse today on relatively low volatility. The one caveat to that is Session's testimony. If his testimony unfolds the way the market expects, a bunch of nothing, then expect mortgage rates to trend sideways to slightly worse. If something unexpected happens, we could see some volatility in mortgage rates.