University of Michigan Consumer Sentiment (Prelim)
The final report of the week is January's preliminary reading to the University of Michigan's Index of Consumer Sentiment that measures consumer willingness to spend. It can usually have enough of an impact on the financial markets to slightly change mortgage rates. By theory, if consumers feel better about their own financial and employment situations, they are more apt to make a large purchase in the near future, fueling economic growth. Forecasts are calling for a reading of 98.9, which would be a decline from November's 99.3. The lower the reading, the better the news it is for bonds and mortgage rates.