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Travis Neliton

Daily Video for Mortgage and Financial Market Update Aug 19th

Hello Friends! Today was an interesting day. What should have been a huge hit to mortgage rates with a "knock it out of the park" type reading on July's Producer Price Index (PPI), I am pleasantly surprised to see traders already "pad" the market with an anticipated bad reading. The main reason this did not make mortgage rates worsen by .25%+ simply is due to the drastic drop in oil prices over the past month. With oil prices dropping and feeling the immediate impact at the gas pump, I guess the traders are comfortable enough to not let the hot PPI number cause things to get out of control. Some other positive news for mortgage backed securities (your interest rate) is tough news for insurance giant AIG and their downgrade in stock value as well as Lehman Brothers stating a 4 billion dollar write down for the 2nd quarter. Please watch the video for more details! Be Blessed!