Market Comment

Mortgage Bonds are trading near unchanged levels, thanks to tame consumer inflation data. The Personal Consumption Expenditure Index met expectations for January, and the year-over-year rate remained well within the Fed's comfort zone.

In other news, Personal Income came in well below expectations, but Personal Spending was reported above expectations. The bump in spending came at the expense of savings, as the Personal Savings Rate fell to the lowest savings rate since October 2008.

For now, I recommend floating. But be prepared to lock, since the Bond is trading near a formidable ceiling of resistance at the 100-Day Moving Average. I will keep you posted on any major developments.

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