Market Comment
After hitting resistance on Monday, Mortgage Bonds are drifting lower.
In the news, the Consumer Price Index--which measures consumer inflation--rose higher than expected. Upon hearing the news, a few Fed members voiced concerns about inflation and loose monetary policy. In other news, Housing Starts for October came in sharply below expectations. Overall, however, that number is only down about 25% from where it was a few years ago.
The recent trend higher in Bonds appears to be running out of steam. Therefore, I recommend locking, since Bonds have a lot of room to fall before hitting support again.
Biased towards locking.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
In the news, the Consumer Price Index--which measures consumer inflation--rose higher than expected. Upon hearing the news, a few Fed members voiced concerns about inflation and loose monetary policy. In other news, Housing Starts for October came in sharply below expectations. Overall, however, that number is only down about 25% from where it was a few years ago.
The recent trend higher in Bonds appears to be running out of steam. Therefore, I recommend locking, since Bonds have a lot of room to fall before hitting support again.
Biased towards locking.
Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.
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