July 29th, 2022 - Market Update
Current position: Carefully floating
We start the day with stocks are slightly higher and Mortgage Bonds slightly lower.
The Personal Consumption Expenditures (PCE) reflects a 1% inflation increase in June. This increase was great than expected. The year over year reading rose from 6.3% to 6.8%, which was higher than the 6.7% expected and the highest reading since 1982.
The core rate rose by 0.6%, pushing the year over year change from 4.7% to 4.8%.
The Q2 Employment Cost Index rose 1.3%. This was one tenth more than forecasted. The index is up 5.1% year over year, a significant increase from 2.9% of Q2 of 2021.
In their meeting earlier this week, the Fed indicated they would be paying close attention to the Q2 Employment Cost Index as a measure of inflation.
This report indicates wages and salaries are up 5.7% year over year.
The Apartment List’s August National Rent Report indicates rents increased 1.1% in July and 12.3% year over year. The annual rate decreased from 14%, yet remains hot.
Mortgage Bonds are continuing to trade in a range between support at 101.219 and overhead resistance at the 100-day Moving Average.
Source: MBS Highway
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