Although markets entered the week on the lookout for more political headlines, it was the Fed that ended up taking center stage. The Minutes from the early May Fed meeting contained important details on the Fed’s plan to slowly decrease the amount of bonds on its balance sheet. This ended up being good news for both stocks and bonds. Here’s why…
Source: Kevin Litwicki Universal Lending
Markets Cheer Fed's Reinvestment Plans

Last week, mortgage rates were just beginning to break the upward trend that’s been in place since mid-April. Without much on the event calendar, it was unclear what this week would do to confirm the breakout. Unexpected political headlines quickly became the focal point, sending shockwaves through the entire financial market and confirming the rate breakout.
Source: Kevin Litwicki Universal Lending
Political Headlines Send Rates to 2017 Lows

When it comes to interest rates, there are only a few quintessential sources of inspiration: the economy and the Fed. After entertaining a complex cadre of new suitors in recent months, rates finally seem ready to reconnect with those familiar old flames. This week, that turned out to be a good thing.
Source: Kevin Litwicki Universal Lending
Rates Quickly Reconnecting With Old Flames

Multiple sources of inspiration continued vying for the market’s attention this week with no clear winners. Stocks remained fully locked in the same indecisive pattern that emerged last week. Rates, on the other hand, may be starting to choose a side.
Source: Kevin Litwicki Universal Lending
Markets Still Juggling Multiple Sources of Inspiration