The reports are in folks, and here’s what we got this morning:
Empire State Manufacturing Survey – estimated to be 13 , actually 15.92
Consumer Price Index (CPI)- estimated to be 0.1% , actually 0.1%
Industrial Production- estimated to be 0.6% , actually 0.6%
Capacity Utilization - estimated to be 71.9% , actually 72%
*Consumer Sentiment Index - estimated to be 74 , actually 72.8
The Consumer Sentiment Index is where 500 households are surveyed each month on their financial conditions, and most importantly, their attitudes about the economy. This report is also related to the STRENGTH of consumer spending, and when it comes down to it, the consumer (you and me) is what makes or breaks the economy.
Companies can make all the products they want, but at the end of the day, if nothing is bought, there’s no profit to report to its shareholders on that long, big, shiny table at the end of the each quarter.
Mortgage bonds have broken through the 25 DMA (Day Moving Average) and have also broken the 200 DMA, so today would be a good day to lock any of your transactions you are in the middle of. There have been some nice gains these past couple of days, so ride it all you can, because I don’t think its going to too much longer.
Make sure to tell you loan officer to be prepared to lock possibly today if things take a turn for the worst.
Again, this is where understanding the market pays off for the consumer.
With the new RESPA rules that have come out, many consumers may now THINK that they are now going to be guaranteed the “best deal” out there, but that’s really not the case if you’re wasting your time. You may save a few dollars folks, but TIMING AND MARKET COMPETENCE is what counts.
Just my 2 cents!
