Again Philadelphia mortgage seekers should consider cautiously floating their rates as bonds move slightly lower today. The Fed’s last federal funds rate decrease may be causing some concerns of an increased fear of inflation. Bonds are trading marginally lower as commodity prices have increased today. However, there is not much news although expect the Fed to be watching the Core Personal Expenditure Index (PCE) that comes out Friday. This is a gauge the Fed uses on inflation, which may become a cause of concern in the near future. Other news today may come from speakers such as the Dallas Fed President Richard Fisher and the new Chicago Fed President Charles Evans. For today, with little news until Friday, keep an ear out for the two Fed speakers and cautiously floating loans.
By, Joe Brady
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