MBS OPEN: Inventories Account for 59% of GDP Gains. Rates Still Contained in Range
January 29, 2010 – 5:38 amPosted To: MBS Commentary
Good Morning. Mortgage Rates will move higher today after economists got what they were expecting AND MORE from Advance Q4 GDP. The market was expecting Q4 GDP to increase at a rate of 4.6%. The actual print: +5.7% Advance Q4 GDP +5.7 % (consensus +4.6), Q3 +2.2 %; final sales +2.2 % (cons +1.6), Q3 +1.5 % Advance Q4 GDP deflator +0.6 % (cons +1.3) vs Q3 +0.4 % Q4 PCE price index +2.7 % (cons +2.6), Q3 +2.6 %; core PCE +1.4 % (cons +1.3), Q3 +1.2 % Q4 consumer spending +2.0 % (Q3 +2.8 %), durables -0.9 % (Q3 +20.4 %) Q4 market-based PCE price index +2.7 % (Q3 +2.8 %), core +1.1 % (Q3 +1.2 %) Q4 business investment +2.9 % (Q3 -5.9 %), equipment/software +13.3 % (Q3 +1.5 %) Q4 home investment +5.7 % (Q3 +18.9 %), bus. Investment in structures -15.4 % (Q3 -18.4 %) Q4 exports +18.1 % (Q3 +17.8...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.