Mortgage Bond Trend

Mortgage Bonds are trading slightly lower this morning, despite some typically Bond-friendly news regarding wholesale inflation and weaker-than-expected housing numbers.
In terms of wholesale inflation, the Producer Price Index (or PPI) fell more than expected. However, the Core PPI--which strips out volatile food and energy prices--was inline with expectations. Also this morning, Housing Starts and Building Permits rose in July, but both came in slightly below expectations. Still, housing appears to be gradually stabilizing.Currently, prices are trying to remain above the 200-Day Moving Average.

Leonard Winslow, Branch Manager, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112