Industry News
Mortgage Industry News
Economy Expands Less Than Exptected
12/22/2010
Bonds are trading slightly lower following this morning’s economic data releases. The U.S. economy expanded at a rate of 2.6% annualized in the third quarter, less than the 2.8% anticipated by most analysts. Mortgage Applications had their largest week over week decline of 2010, coming in at -18.6%. Right now, the futures market is pricing in an 85% chance that the Fed keeps rates between 0% and 0.25% through April 27th, 2011. Currently, the Ten Year yield is at 3.31% (3.31% yesterday) and the 2-10 yield spread is at 270bps, narrowing 1bp since yesterday morning.
