Today the FOMC meeting begins, and tomorrow the Fed releases their announcement. Durable Goods Orders rose +0.3% in October, dipped -0.9% in November and sank sharply in December, down -3.4% (consensus +0.3%). Durable Goods Orders have been in decline for four of the past five months. Excluding transportation, the core fell -1.2% in October, -0.7% in November and continued to decline in December, down -0.8% (consensus +0.6%). The drop in Durable Goods Orders reflects a -9.2% dip in transportation, a -55.5% plummet in non-defense aircrafts, and -19.9% drop in defense aircrafts. The S&P/Case-Shiller 20-city home price index rose 4.8% in September, +4.5% in October and edged up +0.7% in November. New home sales came in lower than expected in November, down -1.6%, and expectations for December are for a +2.7% boost. The Consumer Confidence index rose +1.6 points in December to 92.6, and expectations for January are for another rise to 95.5.
Treasuries have sustained last week's levels following the ECB's announcement of a 1.14 trillion Euro stimulus plan including 60 Billion Euros a month in asset purchases from March to September of next year. The Euro has been in decline for the past six months, it ended 2014 down -12% vs. the dollar for the biggest loss since 2005, and has extended those losses into 2015. In light of the ECB's QE program, the dollar has climbed to an 11-Year high vs. the Euro on increased demand for U.S. assets. Greek bonds continue to sink lower for a second straight day as the new anti-austerity party Syriza takes office. Greek 3-Year yields raised +197 bps to 14.01%, after jumping +197 bps the prior day, and yields on their 10-Year increased +38 bps to 9.48%. Crude Oil remains low at $45.36 per barrel which may stimulate consumer spending and economic growth in the short/medium term. The ruble continues to slide to record lows after Standard & Poor downgraded Russia's bond rating to junk; Russia was lowered one step to BB+, putting it below investment grade for the first time in 10 years. The currency declined as much as -6.2% vs. the dollar after the S&P announcement. Moody's rating of Russian bonds remains one step above the S&P's at the lowest investment grade.
GNMA Issuer Fannie Mae and Freddie Mac Direct Lender Licensed throughout the U.S. and Puerto Rico Privately Held Mortgage Bank for Over 32 Years Excellent Underwriting / Funding Turn Times
This information is provided solely for informational use and is not intended as a trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not liscensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, price, guidelines, fees, costs, terms and conditions are subject to change without notice.