Rates are modestly better this morning but let’s remember that for the past week rates have been pushed higher.
There is a lot to talk about this morning in the financial markets. Ordinarily inflation expectations are the primary factor that drives mortgage rates. The fact that this morning’s Personal Consumption Expenditure (PCE) report indicated worse than expected inflation (year-over year Core PCE was the highest since 1995) would usually be a cautionary sign that rates should move higher. However, worries over the condition of the global financial system are hurting stocks and helping bonds today. Watch today’s you tube video for details.
Topic’s discussed in video:
-Bailout agreement
-Citigroup’s government-brokered acquisition of Wachovia
-Credit markets & LIBOR
Current Outlook: floating