Productivity and Costs (Quarterly)
The rest of the week brings us the release of only three pieces of monthly economic data that may influence mortgage rates in addition to a couple of Treasury auctions. The start tomorrow morning with revised 3rd Quarter Productivity numbers at 8:30 AM ET. Higher levels of productivity are thought to allow the economy to expand without inflationary pressures rising. This is good news for the bond market because economic growth itself isn't necessarily bad for bonds. It is the conditions surrounding an expanding economy, such as rising inflation, that hurt bond prices and mortgage rates. Current forecasts are calling for a decline of 4.9% in productivity, nearly matching the initial estimate. The stronger the reading, the better the news for the bond market. This report generally does not have a noticeable impact on mortgage pricing though, so it will take a wide variance to draw much attention.