So after all that...what lies in wait as the markets reopen following the holiday weekend? Yet another action packed economic calendar. We'll get a look at the housing market via the latest numbers on both New and Existing Homes Sales, but the report voted most likely to influence the markets will be Friday's Personal Income and Spending report with its imbedded data on Core Personal Consumption Expenditures (PCE)...which just happens to be the Federal Reserve's favorite measure of consumer inflation.

Particularly on the heels of the most recent rate cut, this report will take special significance. The Fed would like to see a core inflation rate below 2.0%, but with Bernanke and crew preferring to fight a looming recession with their continuing series of rate cuts, rather than targeting inflation with rate hikes, this will be a tough target to reach for the foreseeable future.

Since inflation is the enemy of fixed return investments like Bonds, a jump higher in the Core PCE on Friday could cause Bond prices to worsen quickly, and home loan rates pop higher.

Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 21, 2008) Japanese Candlestick Chart

 

 

Larry Bailey

856-470-1101 ext 419 Office

609-975-9182 Direct

609-228-6378 Fax

 
Post is included in group: Global Equity Lending

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Larry Bailey (Elliemae, Inc.)

Larry Bailey

Medford Township, NJ

More about me…

Elliemae, Inc.

Address: Medford, NJ, 08055

Office Phone: (925) 227-7732

Cell Phone: (609) 975-9182

Email Me

I entered into the Banking Industry in 1987, with the goal in mind to make sure that my Customers (Clients) always had the best information, so they could make the best decisions for themselves. 23 years later, I have not changed that mindset. I am still making sure that all of my Clients and Relationships are getting the best information available, so that I can help them make the best decisions they can. My background and work experience has focused around the Business of "Money", whether it is working for a Bank, Mortgage Broker, or Mortgage Banker. I have also created and run a National Appraisal Management Company, as well as a Title Insurance Company that serviced the needs of both Lenders and Borrowers. My strategy has always been, and still is, to know more than my Competition and, just as important, to be able to "Put My Money Where My Mouth Is". If I can ever help you with anything to do with how to borrow money or how to save the most when borrowing money, let me know. I will be more than glad to help. Contact me for more information anytime. Specialties: Best example of what I do is helping people or companies achieve their goals. As long as you know where you want to get to, I have the ability to help. I specialize in the financial services industry, but have broad reaching skills that reach across many industries.


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