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.