This week is ending on a high note as some reports give way to good mortgage bond news this afternoon. This week Core Personal Consumption Expenditure Index (PCE), which is the number one report to gauge inflation, shows us that inflation is right in line with Fed target rates between 1-2%.
TAKE A LOOK AT THE RATES! Look at the conforming 3, 5, 7 year ARMs which have really low rates! In the low 5%!! These programs do have pre-pays.