Reminder #1: Nations Direct will be closed on Monday in observance of Labor Day. There will be no rates on Monday, but it will be business as usual on Tuesday.
Reminder #2: Today is the last day to lock on the FHA Purchase Special and the FHA Streamline/ VA IRRRL specials.
Stocks opened higher on optimism around U.S. – China trade relations. Stocks have drifted higher since China said Thursday that is officials remain in communication with the U.S. over possible talks in September. Despite the moderate optimism, both the U.S. and China are set to impose new tariffs on each other’s goods on Sunday. It will be difficult to know what the reaction will be once the tariffs go into effect since it is really hard to pin down exactly what is priced in.
Bond prices are relatively flat, and the 10-Year Treasury is yielding 1.52%. U.S. personal spending increased more than forecasted in July, indicating household consumption remained solid at the start of third quarter and will continue as the economy’s dominant growth engine. The data revealed Americans are showing limited signs of reining in their spending despite recent concerns about an economic slowdown. The next escalation of the U.S. China trade war, that will add import taxes on about $112 billion in Chinese imports, will serve as a good stress test on the American consumer.