Bryan Flynn's Central Massachusetts Mortgage Blog

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Mortgage Bonds: Bulls v. Bears - Week of May 19th Interest Rate Update

The mortgage bond market lost some momentum going into this past weekend.  The bulls and the bears are battling at a key support / resistance level.  It is interesting to watch the bond market in real time put up a fight when it approaches these levels.  On Friday morning it looked like the bears where going to win, then the bulls rallied back.  The bulls lost that in the late afternoon and bonds closed  right on that level of resistance.  Days like that show us that even the experts on Wall Street are split down the line.

That being said this week could sure up some things in the mortgage bond market so we can advise our clients with some level of certainty what rates are going to be doing in the short term.

On Tuesday the PPI is to be released, hotter number expected as worries of inflation continue.  The big release with be on Wednesday at 2pm EST when the Federal Open Market Committee (FOMC) releases their minutes from the last meetings.  How worried are they about inflation will come to light.

I am FLOATING new business.

Comment balloon 3 commentsBryan Flynn • May 19 2008 07:46AM

Comments

Interesting post. So if inflation rears it head then we could see a hike which would drive another nail in this terrble economies coffin

Posted by Charlie Ragonesi, Homes - Big Canoe, Jasper, North Georgia Pros (AllMountainRealty.com) over 10 years ago

I think they will be worried about inflation.  They need a new way of gathering inflation data.  I really feel the old one is quite accurate.

Posted by John Walters, Licensed in Louisiana (Frank Rubi Real Estate) over 10 years ago

We could see a hike, how much of one depends on how bad the Fed thinks inflation is and if the economic numbers in the following weeks prove it. 

Posted by Bryan Flynn, Central Mass and Worcester Mortgages (Regency Mortgage Corporation) over 10 years ago

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