Consumer Confidence Index
Also Tuesday is the release of April's Consumer Confidence Index (CCI). The CCI is considered to be an indicator of future spending by consumers. The Conference Board surveys 5,000 consumers from across the country about their personal financial situations. If sentiment is strong or rising, it is believed that consumers are more apt to make large purchases in the near future. However, if they are concerned about issues such as job security or income, they will probably delay making large purchases. The latter is better for the bond market and mortgage rates because the potential slowdown in spending would help to restrict economic growth. Forecasts show a 1-point decline from March's 104.7. The smaller the reading, the better it is for mortgage pricing.