THE BASIS POINT

Inflation Contained. Consumers More Confident. Record Rates.

 

Rates are still holding near record levels as mortgages recovered from slight losses yesterday and the benchmark Fannie 3.5% coupon is up 14 basis points to 104.08 today.

Below is today’s data recap, and more commentary in WeeklyBasis recap/outlook this weekend.

PPI (April 2012)
– PPI, Month/Month -0.2%
– PPI, Year/Year +1.9%
– Core PPI (less food & energy), Month/Month +0.2%
– Core PPI (less food & energy), Year/Year +2.8%

Lower oil prices brought down overall PPI and core is right about where the Fed wants.

This is a chart of year/Year core (bars) and overall (line)

University of Michigan Consumer Sentiment (May 2012)
– Level 77.8. Previous was 76.4. Consumers say they are ready to spend.

$TLT, $TNX, $TYX, $MBB

 

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Comments [ 4 ]
  1. Pittsburgh Mortgage says:
    May 12, 2012 at 6:57 pm

    Interesting.  Rates are back near record lows, and yet I’ve heard a lot of people saying that we’re entering a sellerst market in house – do you think so?  It seems like now would still be the ideal time to buy – at least for those getting fixed-rate mortgages.

    Reply
    1. The Basis Point says:
      May 12, 2012 at 8:47 pm

      Pegging housing bottoms is a local market endeavor. Here in SF rising rents are making price vs rent math pencil for the first time in years. Then you have the Facebook effect (worry about prices rising fast in the wake of Facebook, Twitter, Dropbox, etc wealth creation) driving up buyer demand. So yes I expect us to turn to a sellers market soon. The only reason I don’t say it yet is because inventory is incredibly tight.
      Julian Hebron (iPhone)
      415-250-1050

      Reply
  2. Pittsburgh Mortgage says:
    May 12, 2012 at 6:57 pm

    Interesting.  Rates are back near record lows, and yet I’ve heard a lot of people saying that we’re entering a sellerst market in house – do you think so?  It seems like now would still be the ideal time to buy – at least for those getting fixed-rate mortgages.

    Reply
    1. The Basis Point says:
      May 12, 2012 at 8:47 pm

      Pegging housing bottoms is a local market endeavor. Here in SF rising rents are making price vs rent math pencil for the first time in years. Then you have the Facebook effect (worry about prices rising fast in the wake of Facebook, Twitter, Dropbox, etc wealth creation) driving up buyer demand. So yes I expect us to turn to a sellers market soon. The only reason I don’t say it yet is because inventory is incredibly tight.
      Julian Hebron (iPhone)
      415-250-1050

      Reply

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