Market Comment

Mortgage Bonds are getting a slight boost this morning due to a worse-than-expected Initial Jobless Claims report and weakness in Stocks relating to more bad news about Greece's budget deficit.

In today's economic reports, Initial Jobless Claims came in slightly higher than expectations, as did March's Producer Price Index, which gauges inflation at the wholesale level. On the plus side, Existing Home Sales were also reported higher than expectations, and the inventory of unsold homes fell to an 8-month level from the previous 8.6-month reading.

For now, I recommend floating. But with Bond prices trading near a think ceiling of resistance and with next week's auctions being announced today be prepared to lock if the situation changes.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112

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