Home Mortgage Rates Stable Today

This morning, the Core Personal Consumption Expenditure Index (PCE) for February was reported at 0.1%, which matched expectations.

More importantly, thanks to a downward revision of the prior month's reading, the crucial year-over-year Core PCE rate now stands at 2.0%--which is within the Fed's desired target zone of 1-2%. The year-over-year Core rate had crept up to 2.2% in recent months. So, seeing this moderation in core consumer inflation is very good news, as inflation has consistently been the biggest enemy of mortgage interest rates.

Currently, mortgage Bonds are trading back above an important support level at the 50-Day Moving Average, and if prices are able to hold their ground, we could see them trade a bit higher still.

For now, I recommend floating as we watch the market going into the weekend. If mortgage bonds can convincingly regain footing above the 50-Day Moving Average, we can cautiously float--but we will be ready to lock, as lately, it seems a day doesn't go by without tremendous intra-day volatility. I appreciate the opportunity to mange your mortgage and debt strategy.