| Last | Change | Percent | |
| S&P Futures | 2103.5 | -8.5 | -0.40% |
| Eurostoxx Index | 3666.1 | -49.3 | -1.33% |
| Oil (WTI) | 57.18 | 0.1 | 0.21% |
| LIBOR | 0.279 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 95.46 | -0.637 | -0.66% |
| 10 Year Govt Bond Yield | 2.04% | 0.04% | |
| Current Coupon Ginnie Mae TBA | 102.4 | -0.3 | |
| Current Coupon Fannie Mae TBA | 101.6 | -0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 3.81 |
Markets are subject to some push-pull this morning with stronger data out of Europe and weaker data out of the US. Bonds and MBS are down.
Bonds are getting roughed up this morning after Germany reported inflation that was higher than expected. The German Bund is trading at 26.3 basis points, up 10 basis points this morning. This has pulled US Treasuries lower. Note the Fed rate decision is scheduled for 2:00 PM EST.
Stocks on the other hand are dealing with a huge miss on GDP. The advance estimate came in at +0.2% for the first quarter. The Street was already expecting weakness due to the weather, however the number still missed the +1.0% street estimate by a wide margin. Consumption growth fell to 1.9% from 4.4% in the fourth quarter. Investment fell from 3.7% to 2.0%. Government spending improved from -1.9% to -.7%, although that was driven by decreases in defense and increases in non-defense spending. Finally, the trade balance decreased a little.
This number is going to be subject to two more revisions, and I would expect this number to be revised upward. Most economic data do not suggest that growth ground to a halt in Q1, just that it slowed down from Q4's +2.2%. I suspect this will seal the deal that the first rate hike will be in September, not June.
Mortgage Applications fell 2.3% last week, as purchases were flat and refis fell 3.7%.
Pending Home Sales rose 1.1% in March, more or less in line with estimates.
Financial professionals can expect more invective thrown their way. Bernie Sanders (I-VT) is throwing his hat in the ring. Sanders, a socialist, will run on the Democratic ticket and try and pull Hillary to the left.
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