University of Michigan Consumer Sentiment (Prelim)
Finally, the University of Michigan will post their Index of Consumer Sentiment for August at 10:00 AM ET. This report will give us an indication of consumer confidence, which projects consumer willingness to spend. If a consumer's confidence in their own financial and employment situation is rising, they are more apt to make large purchases in the near future. But, if they are growing more concerned about their job security or finances, they probably will delay making that large purchase. This influences future consumer spending data and therefore, impacts the financial markets. It is expected to show a decline from July’s 72.5, meaning confidence was softer this month than last and that surveyed consumers are less likely to make a large purchase. Good news for mortgage rates would be a sizable decline.