Rates Up Again on Strong Economic News; FOMC Meeting tomorrow

Bonds opened down on Tuesday following much stronger than expected economic reports. Rates today will be higher by at least .25 to the points possibly more. December Durable Goods Orders were up by 5.2% while only a 1.5% increase was expected, this means that manufacturing sector strength is still stronger than originally believed, which is bad news for mortgage rates. In addition the Consumer Confidence Index came in at 87.9 as opposed to the expected reading of 87, a stronger than expected showing of consumer confidence and also bad news for mortgage rates, which respond favorably to news that indicates a weak economic picture. Tomorrow we'll get the 4Q GDP reading, a key measure of economic growth as well as the results of the FOMC meeting. The markets expect no change, but will instead be looking for indications of the Fed's future outlook.

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Loan Type Today
30 Year Fixed   6.06
15 Year Fixed   5.72
5/1 Adjustable   5.78

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