Mortgage Bonds are trading higher at 69bp from the worst levels seen earlier in the day, after the worst University of Michigan’s Consumer Sentiment number in 26 years. The University of Michigan’s Consumer Sentiment was reported at 59.5, worse than expectations of 62.0 and well below whisper numbers of something in the mid-60s.
Some not so great news regarding Oil…Goldman Sachs, the world’s largest securities firm by market value, said today that oil prices for the second half of 2008 will now average $141 a barrel up from an average of $107. The firm went on to say that prices will rise even higher in 2009, averaging $148 a barrel. The nationwide average for a gallon of regular unleaded hit $3.787 up 22% from year-ago levels. Oil hit a record $127.43 a barrel in early trading today. The folks at Goldman are pretty smart and if their forecast is accurate, you have to wonder how further increases in energy prices will impact the consumer and our economy.
