Mortgage bonds prices remain higher this morning erasing the losses from yesterday. The data generally came in bond friendly. Personal Income rose 0.4%, lower than the expected 0.5% increase. Outlays were unchanged, weaker than the expected 0.3% increase. The PCE Core, an inflation indicator, rose up 0.1% as expected. Overall the data helped us. Michigan consumer sentiment came in at 73.6 relatively in line with expectations. As we continue to state, this is not the end of volatility so stay alert. The bond market closes at 2pm et today and is closed Monday for Memorial Day. We could see trading get choppy heading into the extended holiday weekend.
Carlos Figueira - Keypoint Mortgage 