Currently up around 6 bp for the morning and hovering around the 100 Day Moving Average (DMA), the CPI (Consumer Price Index-average price of basket of goods spanning over 200 categories) came in at the estimated 0.4% as well as the Housing Starts (number of new monthly residential construction projects that are underway) which came in at 574k.
The FOMC meeting is scheduled for 2:15pm EST later today. Basically what’s going on here is that the Fed will likely state that they intend to keep the Federal Funds Rate at 0% for an extended period of time into 2010. This will ease fears on inflation as we approach the new year, and hopefully keep mortgage rates stable for a little while longer.
I’d stay where you’re at on any rate locks for the moment as we enter the FOMC meeting later this afternoon.
Cheers, and have a great day!
