Industry News
Mortgage Industry News
Consumer Spending Increases in July
08/28/2009
Consumer spending increased in July mainly due to the “Cash-for-Clunker” program. According to Richmond Fed President Lacker, the Fed may not need to buy the full $1.25T in mortgage-backed securities this year. Stocks and commodities are up due to European confidence printing better than expectations. Right now, the futures market is pricing in a 96% chance that the Fed keeps rates somewhere between 0% and .25% through December 16th, 2009. Currently, the Ten Year yield is at 3.43% (3.51% yesterday) and the 2-10 yield spread is at 245bps, steepening 2bps since yesterday morning.
