From the Desk - Economic Commentary
Scott Goedken, Director of Institutional Strategies - 8/19/2026
Longer-term Treasury rates moved lower this morning after the U.S. Treasury Department announced it would at least double the size of its long-end debt buyback operations. The decline in yields is providing support for equities, with the Dow, S&P 500, and Nasdaq all moving higher in early trading.
Looking at today's economic data, MBA mortgage applications declined 0.4% last week. Refinance applications increased 2% from the prior week but remained 18% below year-ago levels, while purchase applications fell 2% and were 3% lower than a year earlier. The average interest rate for a conforming 30-year mortgage was unchanged at 6.77%. The data suggest higher mortgage rates continue to weigh on housing activity, particularly purchase demand.
Later today, markets will receive the minutes from the July Federal Open Market Committee meeting. Investors will be looking for additional insight into policymakers' views on inflation, labor market conditions, and the economic outlook following a meeting that produced notable disagreement among Fed officials regarding the path of monetary policy.
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