YOUR Mortgage Minute -- April 15, 2009

Good Afternoon,

I hope that this note finds you well. Happy TAX Day, or something like that!

In the financial sector today, Bonds are trying to shrug off hotter than expected core inflation numbers this morning, after finally muscling above the 25-Day Moving Average yesterday.

The overall Consumer Price Index (or CPI) for March came in lower than expected, bringing the year-over-year reading to its first negative number since August 1955. However, after removing very volatile food and energy prices, the core CPI came in slightly above expectations. Also in the news, the Empire State Manufacturing Index for April came in weak, but far better than expectations--which is also putting some selling pressure on Mortgage Bonds.

Currently, Bonds are holding above the 25-Day Moving Average. Therefore, I will return to recommend floating for now. Certainly, if the situation changes an d a change of direction is required, I will let you know. In the meantime, I hope you have a fabulous rest of your day. If there is ever anything that I can do for you, please let me know.

PS Are you on twitter? Care to "Follow Me"? @MortgageMinute -- if you do.