Key Points:
Despite the 50 basis point federal funds rate (FFR) cut announced by the Federal Open Market Committee (FOMC) on September 18th, 30-year conforming mortgage rates rose slightly as investors weighed comments and fresh projections from FOMC members.
- While 10-year Treasury yields rose alongside mortgage rates, the conforming rate spread over the 10-year fell to the lowest levels of the year.
Interest Rate Trends
Real retail and food services sales fell slightly in August (-0.1%) though real sales remain around 0.9% higher compared with June following a strong reading in July.
- To this point in Q3, strong sales growth has been supportive of real consumption and GDP growth more generally.
Retail and Food Services Sales
