http://MikesDailyMarketReport.com: There are no economic data to report today, but the rest of the week does contain a lot of important data. The most important day this week will be Wednesday, as the FOMC concludes and the Fed provides their announcement. The Market Sentiment really soured after Friday's release of the CPI data and has spilled over into today's session. Both Stocks and MBS are getting hit hard. Investors are beginning to realize that Consumers (based on the Consumer Sentiment last Friday) feel like they're in a recession due to the high prices and are struggling to make it month to month. Some are wondering if the Fed might revise their rate hike to 75bps, in lieu of the 50bps planned. Personally, I don't think they will do so at this meeting; however, it's possible they could look into it for one of their future meetings. I think they'd like to prepare the Markets for any possible moves and not to surprise them. Friday, MBS struggled (at one point down around 100 bps), but closed down 73bps. However, today it followed the trend that it started on Friday, as the Market is selling off to the tune of -132bps (it dropped further as I was wrapping up this video to -150bps). To fully understand the bps, then it is best to know that 1 point is equal to 100 bps; so, our Mortgage Rates that were quoted on Friday at No Point will now cost you 1.5% points today. Yields spiked to it's highest levels in more than the past 5 years. It's currently 1.36% and worsening.
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Also, these videos are base on my views and not represented by any other entity, but my own. I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.