PPC and Delinquencies are Rising

PPC numbers are in and much higher than expected. Both headline and core inflation rates are up .4% – double expectations.

Corelogic released data regarding mortgage delinquencies yesterday. They found that 6.6% of US mortgages are more than 30 days late while 1.4% are more than 120 days late – more than double the peak of delinquencies during The Great Recession. As Congress continues working to pass another stimulus bill which more than likely will not be done until after the election, homeowners and landlords continue to struggle to make their payments.

Mortgage backed securities fell below the double floor of support that they had for awhile and now have their 25 and 50 day moving averages as a double ceiling. We are holding a locking bias with the amount of room mortgage backed securities have below them.