Philadelphia home buyers should be aware of some important economic news coming out today. The volatile Philadelphia market will gain some incite from President Bush and Ben Bernanke as to where rates may be heading and their take on the fallout from the subprime meltdown. Earlier today the PCE, or Personal Consumption Expenditure report, came out at 0.1%, less then expectations of 0.2%. This resulted in pushing stocks higher as inflation seems to be tamed and still within the yearly Fed target rate at 1.9%. However, this is causing bonds to edge lower at the present time.
Ben Bernanke is speaking today and many investors hope to hear a glimpse of where rates are heading. This is highly unlikely, but we are still expecting a rate cut as inflation again has not risen and the ‘liquidity crisis,’ although recovering, is still hurting cashflows. President Bush is also set to speak at 11:10am EST to propose programs to aid those struggling with subprime mortgages or ARMs that are readjusting. In light of this coming news, we recommend a neutral bias this morning. However, keep an eye on coming news today by both the President and the Fed Chairman.
By, Joe Brady