Last Week's Economic Retrospective.
Last week we received good news from the Consumer Price Index (CPI) report.  This report showed that the inflation rate finally seems to be moving lower.  The CPI report showed core consumer price inflation to be better than anticipated, falling to a year-over-year 2.5% rate, down from 2.7% rate that was reported last month. For you the consumer, lower prices on goods and services was certainly good news. For those who are interested in mortgage rates, this news would seem to have reduced the inflationary pressure on Bonds and thus improve mortgage rates.  But this never happened.  Bonds and home loan rates ended neutral.

This Week's Economic Forecast.
The week's economic calendar provides several reports on the housing market, with Existing Home Sales on Tuesday and New Home Sales on Wednesday.  On the whole, if the news this week tends to be economically weak or negative, or otherwise helps reduce the fears of inflation, Bonds will improve. But if the news is economically positive or moderate, Bonds will likely move lower and causing home loan rates to rise.