This afternoon, last week’s Fed minutes will be released. This is essentially a transcript of the Fed meeting and should give us a better glimpse into the thought process of the Fed. We expect the Fed may hint at a hike at the July 27th Meeting. This is expected to be challenging for the Bond market i.e. higher rates.

Regarding GDP Gross Domestic Product., the estimates for Q2 are 1.6% to 1.4% annualized growth. This is a slowdown in the economy and a heavy indicator of a pending recession if there are two consecutive quarters of negative GDP.

We expect and historically every time we enter into a recession, inflation and mortgage rates decline.