Rates held steady Thursday ahead of tomorrow’s key employment data for August. This morning, the July core PCE price index, one of the Fed’s preferred measures of inflation, rose 0.1%, matching forecast, and was 1.4% higher year-over-year. The Fed’s target rate for inflation is 2.0%. July Personal Income rose 0.4%, slightly above expectations. The National Association of Realtors reported July Pending Home Sales fell 0.8%, well below the consensus forecast for an increase of 0.5%. This was the third monthly sales decline in the past four months. Severe shortage of inventory remains a problem for the industry. No other key data will be released today. The closely-watched Employment Report for August will be released tomorrow at 8:30 AM.