Yes to the loan that unlocks the joy of home ownership.
Yes to the lending solution that meets every client’s unique needs and wants.
That’s why we dedicate our every resource to serve as your personal guide through the lending process, solving problems, building confidence. Aslan has access to every lending option leading to the purchase or refinance of a residential home loan.
This is more than work for us. It is our unique joy in this life to share our collective skill, creativity, and care to bring you and your family right to where you belong.
Pleasant PPI Paradox Leaves This Week's Big Victory in Focus
Fri, Jul 12 2024, 4:44 PM
MBS Recap
Pleasant PPI Paradox Leaves This Week's Big Victory in Focus
MBS Recap Matthew Graham | 4:44 PM
Pleasant PPI Paradox Leaves This Week's Big Victory in Focus
The Producer Price Index (PPI) introduced a brief but disconcerting threat to this week's relative level of triumph (courtesy of yesterday's CPI) by suggesting a big, unexpected surge in core inflation at the wholesale level. Bonds initially panicked, but quickly got back on track and never looked back. Thankfully, the components behind the PPI surge are not the same components that would translate to PCE inflation in 2 weeks. We can also consider PPI's notorious volatility and conclude it would take more than one of these surprises to raise a serious eyebrow. With that, the focus of the week remained squarely on yesterday's big CPI victory.
Slightly stronger overnight but giving back gains after PPI. MBS unchanged. 10yr up 0.3bps at 4.216.
10:31 AM
healing continues. MBS up an eighth. 10yr down 1.6bps at 4.197
01:07 PM
Flat and sideways at the same levels as the last update.
04:43 PM
Bonds heading out at or near best levels with MBS up nearly 3/4ths and 10yr down 2.6bps at 4.187.
Lock / Float Considerations
The friendly CPI surprise lowers risk/reward going forward. Risk tolerant floaters will treat it as the confirmation of a new trend that takes rates lower. Risk averse clients are just waiting for rate sheets to reflect most of the MBS improvement before locking.
Yes to the loan that unlocks the joy of home ownership.
Yes to the lending solution that meets every client’s unique needs and wants.
That’s why we dedicate our every resource to serve as your personal guide through the lending process, solving problems, building confidence. Aslan has access to every lending option leading to the purchase or refinance of a residential home loan.
This is more than work for us. It is our unique joy in this life to share our collective skill, creativity, and care to bring you and your family right to where you belong.