Well Bonds took a beating yesterday and long-term mortgage rates are back down to mid april 2008 level, overall still in the high 5%, low 6% range. This morning CPI (consumer price index), a measure of inflation, moderated from 4.0% to 3.9% and if you strip out food and energy, which they call core CPI we are at 2.3% year over year, which is hotter than the Fed wants inflation to be. But still better than we were expecting today. I wonder how exactly they come up with these numbers since food price rise of .9% in April was highest since 1990.
Interesting stat I heard this morning on CNBC, that the average American spends no more than 10% of their budget on energy and 15% on food. So the remaining 75% is everything else and prices on that are not rising very quickly and that goes to slow wage
Bonds are up this morning on the news, the market futures are positive. Technically speaking we are smack in the middle of the 100 and 200 day moving averages, it could go either way at this point, kind of a wait and see mentality.
Former Fed chairman Alan Greenspan predicts home prices to bottom in early 2009 (lets hope he is right).
Freddie Mac reported a big loss and still sees weakness going forward as expected.
Nationally foreclosures are up 4% in April and 65% year over year, again as expected.
And there you have it, the end is in sight. Let's get out there and help people buy and sell their homes.