Market Comment

After a long and painful decline, Mortgage Bonds are due for a relief rally. In economic news, the Core Personal Consumption Expenditure Index--which measures inflation--was reported lower than expectations, as were Personal Spending and Personal Income. The Personal Savings rate remained steady. Although it's very early, the technical signals are starting to show some positive signs. Therefore, I recommend floating for now, but be prepared to lock if the news of the day--such as the Treasury auction announcement--turns prices lower.

Leonard Winslow, New American Mortgage
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.