Daily Market Comment
Mortgage Bonds are getting a boost higher this morning, as prices respond to weaker than expected housing numbers and tame wholesale inflation data.
Housing Starts and Building Permits both came in under expectations. In addition, the Producer Price Index--which measures wholesale inflation--unexpectedly fell due to a drop in energy prices. Next month's number could climb higher again, as oil and natural gas have both been on a tear lately.
For now, I recommend floating, since the Bond is resting above the 200-Day Moving Average. But stay tuned for any major changes that may occur during the day. I will keep you posted.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
Housing Starts and Building Permits both came in under expectations. In addition, the Producer Price Index--which measures wholesale inflation--unexpectedly fell due to a drop in energy prices. Next month's number could climb higher again, as oil and natural gas have both been on a tear lately.
For now, I recommend floating, since the Bond is resting above the 200-Day Moving Average. But stay tuned for any major changes that may occur during the day. I will keep you posted.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
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