Economic indicators

The Federal Reserve's preferred measure of inflation moved further from its 2% target, underscoring the central bank's reluctance to cut rates.

Consumer spending and exports fell slightly in the latest estimate, leading to a downward revision. Imports, which dragged down overall output during the first three months of the year, also came in smaller.

The impact of tariff policy on the mortgage-backed securities market is likely to surface first in the cost of new housing construction.

Independent monetary policymakers have resisted President Trump's call to lower financing costs but could find it harder to ignore employment losses.

While mortgage employment is lower year-over-year, the mixed bag of data makes it more likely that borrowing rates will remain higher for longer.

ABS overall should outperform, but risks remain in specific areas

A strong economy drove mortgage rates higher in the past week but it's still an advantageous market for consumers in some ways, according to Freddie Mac.

A Fannie Mae survey-high 86% of prospective buyers said it was a bad time to buy a home in May.

Mortgage lenders offered more cash-out refinance programs at a time when consumers might be coming to terms with the rate environment.

While the government-sponsored enterprise cut its origination forecast for this year, the Mortgage Bankers Association's updated forecast was unchanged from its October prediction.