Market Comment

Mortgage Bonds are under continued selling pressure this morning, even in the face of relatively tame consumer inflation data.

The Consumer Price Index, which measures prices US consumers pay, came in lower than expected for January. When volatile food and energy are removed from the equation, the Index actually fell. The last time that happened was 28 years ago.

Currently, the path of least resistance for Mortgage Bonds looks to be lower, after falling beneath the 200-day Moving Average yesterday. Therefore, I recommend locking.

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