http://MikesDailyMarketReport.com: The Personal Consumption Expenditure (PCE) released it's inflation data today. This index is the Fed's favorite gauge for inflation, so it holds a lot of weight (in terms of impact with Markets). The PCE rose 0.6% in May, while it's YoY remained Unchanged at 6.3%. The Core PCE (excluding food and energy; and the data that the Fed uses) rose 0.3% while it's YoY dropped 0.2% to 4.7% in May. Personal Income rose 0.5% in May; and Consumer Spending rose only 0.2%. Jobless Claims rose 2k last week to 231k while the Continued Claims rise, as well. Lastly, the Chicago PMI, which measures manufacturing in Chicago region, dropped from 60.3 in May to 56.0 in June. The Inflation data was good news for the Markets, as it may indicate it may have peaked. We're seeing a slowdown in the economy, as Jobs are dwindling and manufacturing is dropping. These are all signs of a possible recessionary period coming, if we're not already there. MBS was very pleased with the inflation data, as it finally hits the 25 DMA and is currently Up about 33bps. This translates to improved pricing for Mortgage Rates today. Yields dipped below the 3.0% level and is currently just under 2.98%.
**As Mortgage Rates spiked over 6% over past few days, ask me about our 7/6 ARM, which may be a good alternative for you or your client. Contact me today!**
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