Mortgage Market Report for Wednesday November 14th, 2007
The Cato Institute had Fed Chairman Ben Bernake speaking. He showed some big changes in the way the Fed reports information. The new strategy will give a more timely insight into the Fed outlook. The Fed will double the frequency of the reports and extend the forecast from two years to three years.
Ben Bernanke said "Ultimately, households and businesses care about the overall...rate of inflation,".
Retail sales were reported in line with traders expectations and the prior read was revised higher. There was also good inflation news from the Producer Price Index. The inflation read is good news so far. Traders will be focusing on tomorrows Consumer Price Index.
Bonds are being supported by the 25 day moving average and above the additional support at the 50 day moving average. There is a longer term price trend line that is going upward and rates may improve in the future. For now I recommend floating as there are additional lines of support that builds.
There is a great newsletter on the red link on the homepage below. Thank you for listening and we will have another report for you tomorrow.
Roger Herrick
California Mortgage Broker
www.ContactHerrick.com
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