Market Insider

By
Mortgage and Lending with Senior Loan Officer at US Bank Home Mortgage NMLS # 273204

 

Market Insider



The 8:30 data was taken well by all markets initially; the bond and mortgage markets were fractionally better prior to 8:30 and showed no movement on the data but we are somewhat concerned about how the bond market will take the increases in the PPI (Producer Price Index; a measuring rod of inflation) data. The increase, although minor, won't likely sit well for rate markets. With interest rates at these low levels any sniff that inflation may increase, whether real or imagined, will hinder bond markets, (and cause mortgage interest rates to go higher).



Crude oil and gold, along with most other commodities continue to fall as the commodity trade that pushed most every commodity higher and to excess is ending with huge declines. Crude oil on Monday climbed back up to $103.50, at 9:00 this morning trading at $97.00. Yesterday gasoline futures came under heavy selling pressure pushing prices to limit down in the futures markets. 

 

The Senate Banking Committee is starting hearings today on the Dodd Frank bill that in our view was Congress running amok. Bernanke along with FDIC Chair Sheila Bair, SEC Chair Mary Schapiro, CFTC Chair Gary Gensler, and Deputy Treasury Secretary Neal Wolin. There had to be some legislation to rein in the large banks that clearly demonstrated they have little self control and really demonstrated in the sub prime catastrophe that management of these huge banks didn't have a clue about what was happening in their banks. Most of the other stuff in the Dodd Frank bill was mostly unnecessary in its detail and complexity. Bernanke is expected to support the bill, many Republicans want the bill tossed into the trash.

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