Excerpt from: Flagstaff Mortgages
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| September 27, 2007 | | Waiting for the Personal Consumption Expenditure Index Numbers on Friday to see what the Fed may do about additional rate cuts | We have not had strong data to make mortgage rates drop lower. The Initial Jobless Claims were reported at 298,000, which was well below expectations and the lowest level since early May. This may be bad for Bonds if it continues. New Home Sales for August were reported at 795,000 which was lower than expectations of 830,000. The median price came in at $225,000, which was the lowest level since January 2005. The inventory of unsold new homes nationally rose to a 8.2 month supply from last month's 7.5 month reading. It remains to be seen if this will help pricing. We are waiting to see the PCE number on Friday -- the Federal Reserve's favored inflation gauge. This report could cause a decisive move in Bonds because it may dictate if the Fed can cut again with inflation tame, or if the Fed needs to hold because inflation is on the rise. Both Stocks and Bonds could have sharp reactions. | |
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