Univ of Mich Consumer Sentiment (Prelim)
The University of Michigan closed out this week’s light calendar with the release of their October Index of Consumer Sentiment at 10:00 AM ET this morning. They announced a reading of 46.3 that was a decline from September’s 48.1 and lower than forecasts. Waning confidence is favorable for bonds and mortgage rates because it means consumers are likely to spend less, restricting economic growth. Consumer spending makes up over two-thirds of the U.S. economy and bonds tend to be more appealing to investors when economic activity is weaker. Unfortunately, the good news is being ignored by traders this morning, preventing a positive impact on mortgage rates.