Wednesday, September 17, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Wednesday - September 17, 2014 - 10:10am ET
Current Trend Direction: Climbing higher
Float/Lock Bias: Carefully Floating
Current Price of FNMA 4.0% Bond: $104.97, +3bp
It's Fed day. At 2:00pm ET the Fed will release their monetary policy statement.
Everyone is looking to see if "considerable time" will be left in statement to describe how long the Fed Funds Rate will be held steady post QEIII. We don't see any reason to change the statement at this time, as it would likely hurt Stocks pretty bad...but you never know, so stay tuned.
There is no inflation to speak of based on this morning's numbers as evidenced by the tame inflation data from the Consumer Price Index (CPI), declining by 0.3% in August versus the 0.0% expected. The Core rate was unchanged and below the 0.2% expected. Year-over-year rates - CPI 1.7%, Core also 1.7%, both below the Fed's target range of 2%.
We have been floating since we hit the bottom of the trading range late last week and this has served us well. We will continue to float into the Fed statement and subsequent press conference at 2:30pm ET, as long as the Bond markets behaves for us.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
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