Rate Watch update - 5/15/09
May 15th, 2009Happy Friday May 15, 2009
Consumer Sentiment reported this morning, the best reading since last September, likely due to improved values in investment accounts as stock values move higher.
Core Inflation, which excludes food and energy, was also released today and reported up 1.9% over past 12 months. The Fed likes to see that number closer to 1%.
Lastly, the NY Empire State Manufacturing Index (measures factory production) came in better than expected and has shown improvement for 3 straight months.
As you can imagine, with all this positive news, and inflation slightly up, stocks are doing well today and bonds are already in sell off mode, and so we’re likely to see rates worsen today as a result. As I’ve said in the past weeks, we are seeing more and more of these days where the news, while not earth shattering, is positive. And rates are always going to suffer on days like this. While a recovery is badly needed, rates will continue to rise as more and more evidence is revealed that a recovery is in sight.
Have an awesome weekend. Let me know if I can help you with any real estate financing questions.
Mike