http://MikesDailyMarketReport.com: The Consumer Priced Index (CPI) rose 0.3% in April while it's YoY dropped from 8.5% to 8.3%, missing expectations of 8.1%. The Core CPI (excludes food and energy) rose 0.6% while it's YoY dropped from 6.5% to 6.2%, also missing it's forecasts of 6.0%. One of the real reasons behind this drop was due to a big spike in March 2021, which fell off the YoY average. This is still concerning, especially when you look at the MoM data. Some Economists are now calling on the Fed to hike rates at 0.75%, which they announced last week was off the table. It will be interesting to see if the Fed has a change of heart, so when they have any more upcoming speeches, then you know people will be listening for any hints of a 0.75% hike possibility. Stocks are down on the news, along with more disappointing earnings reports. MBS had a rollover, so the graph looks worse than reality. This is when there's a reset in pricing for MBS, which we're now rolling over to June. There's no effect on pricing for Mortgage Rates. MBS was Down quite a bit this morning, which prompted worse pricing; however, it subsided and is now Up 8-11bps; and Lenders have repriced for the better. Pricing is similar to yesterday's close, if not a little better. Yields spiked earlier (touching off the 3.0% range) and have slid back down to 2.93%.
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