March 14th, 2014
March 14, 2014; 9:44am
Interest rate trends: Today – Flat; 10 days – Flat; 25 days – Flat
Interest rate recommendation: Cautious float
Mortgage bonds (MBS’s) are flat this morning, holding on to yesterday’s surprising gains. Interest rates are really nice right now so locking is good, but with weaker than expected economic news today we will maintain our cautious float recommendation. The February Producer Price Index (PPI) falls to -0.2% vs the 0.2% expected, and the core PPI at -0.2% vs the 0.2% expected. This is continues to indicate that inflation att he wholesale level remains tame. This weak economic news is not helping bonds move better this morning, so like I said earlier, locking is not a bad idea. Have a great day and nice spring-like weekend!