Market Comment

Mortgage Bonds attempted to move higher in early trading, but have since given up their gains after hotter-than-expected inflation news was released.

This morning, the Producer Price Index--which measures wholesale inflation--was reported significantly higher than expected, due to rising energy costs. Also in the news, Initial Jobless Claims came in higher than expected, indicating that the jobs picture is not pretty.Currently, Bonds have dropped beneath an important level of support at the 200-day Moving Average.

Therefore, I recommend locking at this time.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
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