Happy Friday -13th everyone!
Mortgage Bonds are trading higher, following a consumer inflation reading that essentially met expectations.
Inflation data shows consumer prices are on the rise, but the report met expectations – hence the contradictory response in Bonds… The headline Consumer Price Index came in at 0.4% for the month, which met expectations…however this reading did carry the year-over-year rate to a hotter 3.2% – up sharply from the prior month’s 2.7% reading. This was the hottest year-over-year headline rate in 2 1/2 years.
Even after stripping out the so-called “transitory” higher costs for energy and food, the Core CPI came in at 0.2%, which was slightly higher than the 0.1% expected. This brought the year-over-year Core rate to 1.3%, up from last month’s 1.2% reading. The takeaway here – one of the Fed’s QE2 goals was to create inflation and avoid deflation – it appears that they have been somewhat successful as the risks for deflation have somewhat abated.
The Consumer Sentiment Index was released this morning and reported that consumer sentiment rose to 72.4 vs the 69.5 expected.
The Euro is stronger today as economic growth in the region came in better than expected.
Did you Know?
Friggatriskaidekaphobia? That the official name for “fear of Friday the 13th.” And this is the only day during 2011 when the 13th will fall on Friday. Historically, Stocks don’t get spooked and tend to move higher on Friday the 13th. If this plays out, it would hurt Bonds…so go ahead and give your lucky rabbits foot a rub just in case. 🙂
Today’s Base Rates:
Mortgage Product Rates APR
30 Year Fixed Conf 4.5% 4.73%
15 Year Fixed Conf 3.75% 4.04%
5/1 Conf ARM 3.125% 3.28%
5/1 Jumbo ARM 4.125% 4.29%
Thought of the Day
To achieve, you must care enough to make the effort but not so much that you’re afraid to fail. The most valuable results are reached by focusing intensely on what you’re doing without attaching your sense of self worth to what you get from it.
Imagine what you could do if you could do without worry. In fact, you can.
Think of how effective you could be if you didn’t have to obsess over how effective you were being. Those who accomplish much, do so by being unconcerned that they might accomplish little.
Have a great day & weekend
Renee Baccaro Realtor