Commentary: A report earlier today from the Commerce Department showed retail sales unexpectedly fell 0.3% in December after posting an outsized 1.8% gain in November.
In a separate report the Labor Department indicated the number of Americans standing in line to file for first-time jobless benefits rose by a surprising 11,000 last week.
Limited pricing power among retailers and continued labor market weakness are strong indications inflation concerns are not yet even a blip on investors' radars -- and that is a story that solidly reinforces the consensus belief that the Fed will not make a move to raise short-term interest rates anytime soon.
The credit market's next task is to underwrite and distribute the $13 billion of 30-year bonds Uncle Sam has on the auction block today. These securities are currently carrying their highest yields in the last six months - so the potential is high this debt offering will draw decent investor demand. If so, look for this event to be supportive of steady to perhaps fractionally lower mortgage interest rates. A poorly bid auction today will almost certainly put some noticeable upward pressure on mortgage interest rates.
Be patient . be disciplined . and play it by the numbers.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
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About Me
- David Kimmer
- Beaverton, OR, United States
- David is a loan officer for American Pacific Mortgage. He has worked in the lending industry since 2000. Prior to that he invested 19 years in the insurance industry. He enjoys helping people finance the purchase of their dream home.
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