Volitility Continues

Following yesterday’s losses in the bond market, today has been a day of being up, down and now slightly up again.  Today has been a big day for financial news.  Most importantly to mortgage rates, Core CPE came in showing an increase of only .1%, in line with estimates with an annual rate of only 1.6%.  This is below the Fed’s target rate and one of the significant reasons QE3 was enacted.  Showing that our economy is still struggling, the Chicago fell below 50.  A number below 50 shows that our economy is contracting where a reading over 50 is a show of economic expansion.  Today’s reporting was the lowest reading since September of 2007…  certainly not a good sign….  Given the volatility and the pending G-Fee increase that we discussed yesterday, we are strongly suggesting a locking stance.