Mortgage Report: Week of April 2nd - 6th

Posted on April 2, 2007 at 5.33 PM

The Fed closely watches the rate of inflation and uses different indeces to gauge what is happening. The Core Personal Consumption Expenditure(PCE) is one of their favorites. Last week it increased more than expected through February. The Fed usually doesn't want inflation more than 2%, and the report form the PCE was at 2.4%.

Mortgage bonds worsened during the week and home loan rates increased modestly(.125%). Next week we expect the Employment Report due on Friday and hope the number is higher than the 90,000 reported in February. A weak report(less than 90,000 jobs) could help bonds rally and inprove home loan rates. A good report may cause home loan rates to worsen even more then they have this week. Stay tuned.

Best,
Steven

Post a comment


To help maintain the integrity of the conversation we ask that each user simply paste the keyword (below in red) into the confirmation field below. Sorry, but if you forget this step, your comments will not be saved!