GOOD THURSDAY AFTERNOON!!!
ONE MORE WEEK TILL THANKSGIVING?!?!?!?!?? How this year is flying by!
I hope everyone is having a FANTASTIC day. Yesterday's temperature was a beautiful 55'ish...and today is a cold, rainy, snowy mix at 30 degrees. WELCOME TO MICHIGAN!
Mortgage Bonds are trading higher, currently at +19 basis points, after this morning's inflation report. The Consumer Price Index (CPI) reported that inflation is inline with expectations. However the Core CPI, which strips out food and energy, was reported at 2.2%--up from 2.1%.
Typically, higher inflation is a negative for Bonds. But in this case, Mortgage Bonds improved because Traders viewed the higher Core CPI as a potential reason for the Fed to hold off on another rate cut. This initially led to Stock sales with the proceeds moving into Bonds--which has helped Bond prices move higher.
For now, I will continue to float as bonds enjoy the improved pricing. Seeing as bond prices have increased higher than the "rule of thumb" +16 basis points, we may see rates go down. As of today, we are still offering a 30-year fixed at 6.50% with NO points.
Make it a GREAT day!