Daily Market Update 5/29/08

Mortgage rates continued their upward trend Thursday as first quarter Gross Domestic Product (GDP), a key measure of economic growth, was revised higher. Investor sentiment has shifted in recent days, as inflationary fears have increased while concerns about a severe economic contraction have receded. Most forecasters are now expecting the next Fed move to be an increase in rates later this year. Crude oil prices moved higher on a report showing an unexpected decline in oil and gas inventories. Focus now turns to tomorrow’s Department of Commerce release of the Core PCE, which measures price changes in consumer goods and services and is watched closely by the Fed.

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