With a light week the previous week, only a few data reports will have any far reaching impact, with the M2 money supply and the Federal Reserve Balance sheet giving the most insight.

The M2 Money supply has really only increased ever since the COVID pandemic, and has more or less kept in line with the rate inflation has been impacting the costs of many sectors.

While the Federal Reserve balance sheets show a trend of increasing lately, it has shown there is still restraint by the Federal Reserve which is evidenced by the recent increase in interest rates. They are showing strong intent that they do want to combat the rising inflation and bring it down under control.

M2 Money Supply
M2 increased to $23.343 trillion in August, up from $23.218 trillion in July, an increase of approximately $124.9 billion, or 0.54% month-over-month. On a year-over-year basis, M2 was up about 5.66%, compared with $22.093 trillion in August 2025.

Federal Reserve Balance Sheet
The Fed’s securities held outright totaled about $6.471 trillion, including $4.558 trillion in U.S. Treasury securities and $1.910 trillion in mortgage-backed securities (MBS). Compared with the previous week, Treasury holdings increased by roughly $3.9 billion, while MBS holdings declined by approximately $3.1 billion.

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw an increase of 0.16%, bringing the current rate to 6.42%.
• 30-Year FRM rates saw an increase of 0.08%, bringing the current rate to 7.03%.

MND Rate Index

• 30-Year FHA rates saw an increase of 0.34%, with current rate at 7.15%.
• 30-Year VA rates saw an increase of 0.35%, with current rate at 7.17%.

Jobless Claims
Initial Claims were reported to be 220,000 compared to the expected claims of 210,000. The previous week landed at 207,000.

What’s Ahead
PCE Index, the Federal Reserve’s preferred inflation indicator, is due next week. This will be followed up by Non-farm Payroll and Unemployment Data. Lastly, there will also be some insight on current GDP growth numbers.

Expectations that the Federal Reserve would raise rates to combat significant inflation have come to pass, with a modest 0.25% increase in the rate. The Federal Reserve has stated that it remains committed to restoring inflation to its 2.0% target, which will likely include further rate increases in the future. The rest of the week featured a light economic calendar with very few impactful releases, leaving the Federal Reserve’s rate decision as the primary driver of market activity.

FOMC Rate Decision
At its September 15–16, 2026 FOMC meeting, the Federal Reserve raised the federal funds target range by 25 basis points, from 3.50%–3.75% to 3.75%–4.00%. This was the Fed’s first rate increase since July 2023.

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw an increase of 0.17%, bringing the current rate to 6.26%.
• 30-Year FRM rates saw an increase of 0.19%, bringing the current rate to 6.95%.

MND Rate Index

• 30-Year FHA rates saw an increase of 0.13%, with current rate at 6.81%.
• 30-Year VA rates saw an increase of 0.12%, with current rate at 6.82%.

Jobless Claims
Initial Claims were reported to be 198,000 compared to the expected claims of 208,000. The previous week landed at 206,000.

What’s Ahead
Another light week lies ahead. The notable reports will be the Federal Reserve’s balance sheet and M2 Money Supply data releases. These reports can provide valuable insight into changes in liquidity and the broader money supply, both of which can influence inflation and overall economic conditions.

While CPI data has come in within expectations for current inflation, inflation remains much higher than in previous years. The rate is holding steady at 2.4%, which is above the Federal Reserve’s 2.0% target. 

There are sectors where cost has seen significant increase and has not been reflected in the CPI due to the more recent changes implemented by the Trump administration. Fuel costs, for example, have seen an upward year-over-year trend that has been exacerbated by the recent war in Iran.

The Fed Beige Book and balance sheet have also shown steady growth and an upward trend as of late. Despite inflation data running counter to this idea, there are still widespread expectations that rates will be cut again.

Consumer Price Index
Consumer prices increased 0.4% in August, while core CPI rose 0.3%. Annual inflation remained at 3.4%, with core inflation easing to 2.4%. While underlying inflation continues to move closer to the Federal Reserve’s 2% target, the monthly increase suggests that inflationary pressures remain persistent.

Producer Price Index
Producer prices increased 0.4% in August, while prices for goods rose 1.1% and services increased 0.1%. Producer prices were up 5.4% from a year ago, indicating continued wholesale inflation pressure. Core PPI, excluding food and energy, increased 0.2% for the month and 4.6% year over year. The stronger headline reading could make the Federal Reserve more cautious about future rate cuts, potentially putting upward pressure on mortgage rates. 

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw an increase of 0.05%, bringing the current rate to 6.09%.
• 30-Year FRM rates saw an increase of 0.05%, bringing the current rate to 6.76%.

MND Rate Index

• 30-Year FHA rates saw an increase of 0.24%, with current rate at 6.68%.
• 30-Year VA rates saw an increase of 0.24%, with current rate at 6.70%.

Jobless Claims
Initial Claims were reported to be 206,000 compared to the expected claims of 200,000. The previous week landed at 209,000.

What’s Ahead
FOMC is holding an economics projection meeting which should provide forward guidance on policy. Additionally, the Federal Reserve Interest Rate decision happening mid-week, making for a very light week.

The Non-farm Payroll figures are a strong indicator of the job market and showed a notable increase this quarter. However, this doesn’t necessarily indicate a significant shift in the job market as a whole, as certain sectors have experienced outsized impacts compared to others. JOLTs job openings data does support the increase in openings seen over the last quarter, though it is not among the largest indicators on the broader economic scale.

Non-farm Payrolls
The +162,000 jobs was considerably stronger than the 31,000 average monthly gain over the preceding 12 months. Food services added 59K and local-government education added 42K, while information employment fell 23K.

JOLTs Job Openings
The number of job openings was little changed at 7.3 million in July, the U.S. Bureau of Labor Statistics reported today. Hires and total separations both changed little at 5.1 million. Within separations, quits (3.1 million) and layoffs and discharges (1.7 million) were little changed. 

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw an increase of 0.06%, bringing the current rate to 6.04%.
• 30-Year FRM rates saw an increase of 0.05%, bringing the current rate to 6.71%.

MND Rate Index

• 30-Year FHA rates saw an increase of 0.07%, with current rate at 6.44%.
• 30-Year VA rates saw an increase of 0.09%, with current rate at 6.46%.

Jobless Claims
Initial Claims were reported to be 200,000 compared to the expected claims of 209,000. The previous week landed at 215,000.

What’s Ahead
PPI and CPI inflation data are set to be released mid-week, along with other notable economic releases, including the Federal Reserve Balance Sheet and Consumer Credit data.

The PCE Index has remained above the Federal Reserve’s target and continues to be the Federal Reserve’s preferred measure for tracking inflation. Although the latest reading was not significantly above expectations, when considered alongside a number of other factors, it could contribute to the potential for a rate increase, particularly as the PCE Index has repeatedly come in higher than expected in recent months.

At the Jackson Hole Symposium, the Federal Reserve commented that it remains committed to bringing inflation back to its 2% target. The Fed additionally stated that it would no longer provide forward guidance on future rate decisions, signaling a change in its communication approach going forward.

PCE Index
The U.S. PCE price index rose 0.4% month-over-month in May 2026, matching April’s increase and coming in below market expectations of a 0.5% advance. Goods inflation eased to 0.4% from 0.7%, while services inflation rose to 0.5% from 0.3% in each of the previous two months.

The core PCE index, which excludes food and energy, increased 0.3%, the same as an upwardly revised 0.3% in the previous month and in line with market forecasts. On an annual basis, headline PCE inflation accelerated for a third consecutive month to 4.1% from 3.8%, in line with expectations and marking the highest level since April 2023.

Core PCE inflation edged up to 3.4% from 3.3%, also in line with forecasts and reaching its highest level since October 2023. At its June 2026 meeting, the Federal Reserve raised its inflation forecasts, projecting PCE inflation at 3.6% and core PCE inflation at 3.3% for the year, both remaining well above the central bank’s 2% target.

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw an increase of 0.03%, bringing the current rate to 5.98%.
• 30-Year FRM rates saw an increase of 0.01%, bringing the current rate to 6.66%.

MND Rate Index

• 30-Year FHA rates saw an increase of 0.04%, with current rate at 6.37%.
• 30-Year VA rates saw an increase of 0.02%, with current rate at 6.37%.

Jobless Claims
Initial Claims were reported to be 225,000 compared to the expected claims of 205,000. The previous week landed at 209,000.

What’s Ahead
Non-farm Payrolls are set to be the highest-impact data release in the week ahead, with unemployment and manufacturing data also set to follow.

The latest FOMC minutes reinforced the Federal Reserve’s continued focus on price stability, with policymakers voting to maintain the current federal funds rate for the time being. However, the path forward remains uncertain, particularly as persistent inflation continues to complicate the case for additional rate cuts. In fact, several policymakers have indicated greater concern about inflation and favored tighter monetary policy at the most recent meeting.

With the more recent departure of former Fed Chair Jerome Powell, there is a lot of uncertainty about where the Federal Reserve will move under the current administration. There is also a lot of speculation about further interest rate cuts, although such cuts may be difficult to justify given current inflation rates. Leading economic indicators have shown positive results, suggesting that the economy is growing, but many sectors are still hurting, with employment conditions weaker in some areas.

Leading Economic Indicators
The Conference Board Leading Economic Index (LEI) for the US increased by 0.2% in July 2026 to 99.5, after an upwardly revised decline of 0.1% in June. As a result, the LEI’s six-month growth rate turned positive, to an increase of 0.2% between January and July 2026, a sharp reversal from its 1.3% contraction over the previous six months.

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw a decrease of -0.01%, bringing the current rate to 5.95%.
• 30-Year FRM rates saw a decrease of -0.02%, bringing the current rate to 6.65%.

MND Rate Index

• 30-Year FHA rates saw an increase of 0.04%, with current rate at 6.33%.
• 30-Year VA rates saw an increase of 0.04%, with current rate at 6.35%.

Jobless Claims
Initial Claims were reported to be 210,000 compared to the expected claims of 205,000. The previous week landed at 200,000.

What’s Ahead
PCE Index coming up this week as the leading inflation report for the Federal Reserve.