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Mortgage Industry News
Consumer Spending Increases
02/01/2010
Consumer spending increased for the third straight month, although less than expected, in another sign that the economy may be turning; personal income jumped by 0.4%. President Obama announced his $3.8T budget for 2011, which would give an estimated $1.6T deficit; the budget includes $800B in higher taxes and fees on those earning more than $250,000, banks that benefited from the financial industry bailout and the oil, gas and coal industries. Treasuries are down on the announcement. Right now, the futures market is pricing in an 88% chance that the Fed keeps rates somewhere between 0% and .25% through June 23rd, 2010. Currently, the Ten Year yield is at 3.654% (3.68% on Friday) and the 2-10 yield spread is at 276bps.
