Today's Interest Rate News
July 31, 2015; 9:32am
Interest rate trends: Today – Lower; 10 days – Lower; 25 days – Lower
Interest rate recommendation: Very cautious float
It’s a blind squirrel day for mortgage bonds (MBS’s). The Chicago PMI came in better than expected, but the Employment Wages report came in unexpectedly low, and not just a little low, it was a shock to the market and is causing MBS’s to rally up +34bps. This particular employment indicator has become front and center today because it is an influential report for the Fed. It shows very little wage growth and thus very little reason to expect any inflation. This will also encourage more Fed members to be at ease on raising interest rates. We will change to a very cautious float recommendation as the playing cards have changed, at least for the moment. Have a great day and nice summer weekend.