Market Update 12/23/2015
MBS are down -3/32 (FNMA 30-yr 3.5 at 102.26), around 10/32 lower than yesterday at this time. Unfavorable repricing took place yesterday.
Stocks have moved higher and MBS have declined this morning. The Dow is up 125 points. New Home Sales and Consumer Sentiment will be released at 10:00 et.
November Durable Orders were flat from October, which was better than the consensus for a decline of 0.6%. Excluding the most volatile components, the results were close to expectations. Core PCE inflation rose 0.1% from October, matching expectations, and it was 1.3% higher than a year ago. This is the Fed’s preferred inflation indicator. Personal Income also matched expectations with an increase of 0.3% from October.