http://MikesDailyMarketReport.com: The Q3 GDP remained unchanged for it's final revision at 2.1%. This indicates the economy is still growing at a modest pace, which is especially important due to the Trade negotiations with China during this period. Personal Income rose by 0.5% in November. Consumer Spending rose by 0.4% in November. The Personal Consumption Expenditure rose 0.2% MoM, whereas, it's YoY rose from 1.4% tp 1.5%. The Core PCE (this is what the Fed uses when it gauges Consumer Inflation) rose only 0.1% MoM and it's YoY dropped from 1.7% to 1.6%. The Fed's Target Rate is 2.0%, so this shows a very tame inflation report. The Consumer Sentiment Index improved from 99.2 to 99.3 in December. Stocks are still breaking new highs, so be cautious for any pull back on consolidation/profit taking. MBS is currently Up 5bps. Between yesterday's positive movement and today's, then some Lenders may price in Mortgage Rates a little better today. I'd say you'd find it from Unchanged to slightly better. Yields are currently at 1.92%. The ceiling ahead is currently at 1.97%. I think it's very possible that we could test it before we see any possibility of a pull back that would help MBS and Mortgage Rates.
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