Friday 10/31 ...Boo!!!!

Today brings us an action packed day for economic reports. So far this morning, mortgage backed securities are liking what they see and we are getting a good move up in price, thus lower in rates on mortgages. The day is still early and usually Friday's are not the most friendliest of days to mbs; however, we have had about 7 very bad days in a row so we are due for a positive day.

The reports
1. Personal Spending, economists expecting -.1%, but number came in worse at -.3%, good for mbs.
2. Personal Consumption Expenditure, which is a gauge of inflation on the consumer level and the feds favorite, the number came in at a .2% reading. The year over year reading is currently at 2.4% which is higher then where the fed would like it to be. This is bad for mbs, but it appears the market is discounting this report due to the fed report we got earlier in the week where they basically said inflation is of no worry. Remember, this report is backwards looking as it measured inflation last month.
3. Employment Cost Index, economists expecting a .7% reading and it came in right where expected.
4. Personal Income, economists expecting a .1% increase, but the number came in higher at .2% increase.
5. Chicago PMI, economists expecting a 49.7 reading, actual number came in much worse then expected at 37.8, good for mbs.
6. Consumer Sentiment, economists expecting a 57.5 reading, actual number came in at 57.6.

Busy day as far as economic reports and all in all, pretty positive for mbs. We are getting tame inflation readings and oil is declining in price today as well.

As for locking a rate, today looks like a good day to be floating. We will post back if we see the market start to turn.

Hope everyone has a safe Halloween!