You Tube link to see rate update video:
Mortgage-backed bonds are continuing to rally this morning. After touching the 200-day moving average on Tuesday mortgage-backed bonds have reversed higher by 170 basis points. This is an indication of how strong that level of support is.
We have to look ahead to tomorrow as the Fed’s favorite gauge of inflation is scheduled for release. The Personal Consumption Expenditure (PCE) is deemed to be the most current read on inflation. Watch today’s you tube video to find out what this report will mean for mortgage rates…….
Current Outlook: neutral ahead of tomorrow’s PCE report
Personal Consumption Expenditures and Core PCE
The Core PCE excludes the volatile food and energy components from a measure of price changes in consumer goods and services. It consists of the actual and imputed expenditures of households and includes data pertaining to durables, non-durables, and services. It is essentially a measure of goods and services targeted towards individuals and consumed by individuals. This report is the Fed’s favorite gauge on inflation.