March 31st, 2014
March 31, 2014; 9:50am
Interest rate trends: Today – Higher; 10 days – Flat; 25 days – Higher
Interest rate recommendation: Locking bias
Mortgage bonds (MBS’s) are worsening again this morning while the stock market gets a high off of Fed Chair Janet Yellen’s comments that the Fed has more options to stimulate a weak economic recovery. The March Chicago PMI report came in at 55.9 from 59.8 in February, showing additional economic decline. The Department of Agriculture reports that food prices will increase 2.5% to 3% this year, 2013 increase was 1%. Inflation is an enemy to interest rates, but the projection isn’t so significant as to cause rates to increase considerably. We will continue our locking bias into Friday’s all-important March Jobs Report where 197k jobs are expected to have been created. Have a great day!