Mel's Blog

Friday's bond market has opened relatively flat despite weaker than expected inflation data. The stock markets are showing minor gains with the Dow up 9 points and the Nasdaq up 2 points. The bond market is currently up from yesterday's close by 12 basis points. We will still see an increase  in this morning's mortgage rates compared to yesterday's morning pricing. This is mostly due to weakness in bonds late yesterday.

The Labor Department posted January's Consumer Price Index (CPI) this morning, showing a 0.2% increase in the overall reading and a 0.1% decline in the more important core reading. Both were below forecasts, meaning that inflationary pressures were calmer at the consumer level of the economy last month than many had thought. This can be considered favorable news for the bond market and mortgage rates, however, this morning's news has failed to influence bond buying.

                Mel