Personal Income and Outlays
July's Personal Income and Outlays report was posted at 8:30 AM ET this morning, revealing a 0.4% rise in income and a 0.3% increase in spending. The income reading matched forecasts, but the spending was slightly softer than forecasts were calling for. Since consumer spending makes up over two-thirds of the U.S. economy, the weaker than expected reading makes the data slightly favorable for mortgage rates. However, this is not the cause of this morning’s bond gains.