Thursday, June 26, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Thursday - June 26, 2014, 10:35am ET
Current Trend Direction: Sideways to higher
Float/Lock Bias: Cautiously FloatingCurrent Price of FNMA 3.5% Bond: $102.72, +16bp
Tame inflation from the Fed's favorite gauge of inflation, Core PCE, pushed Bond prices higher this morning, as Mortgage Bonds continue their slow ascent.
May Core PCE rose by 0.2%, inline with estimates - the Core strips out volatile food and energy. The year-over-year Core, rose by 1.5%, the highest rate since February 2013, but still below the Fed's target of 2%. Inflation has been rising a bit as the Fed tries to boost it to near the 2% level, while trying not to let pressures grow to high. Within the report it showed that Personal Incomes rose by 0.4% last month, inline, while Personal Spending edged up 0.2%, below the 0.4% expected. The U.S. savings rate rose to 4.8% from 4.5%, hitting its highest level in eight months.
Rounding out today's economic data was Weekly Initial Jobless Claims falling by 2K to 213K and just above the 310K expected. The Fed's Lacker said this morning that there is more slack in the labor market than the 6.3% jobless rate indicates, we agree.Later today at 1:00pm ET, the Treasury will announce the results from today's $29B 7-Year Note offering and comes after two average showings this week from the 2 and 5-year paper.
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First Choice Loan Services NMLS # 210764
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