Rates Up on PPI Inflation Concerns

Rates continued their relentless rise today on stronger than expected Producer Price Index. Rates should increase by more than .25 to price. The PPI for January rose in both the general and core reading to levels greater than expected. This is bad news for mortgage rates as it indicates inflation in production related costs. The Consumer Confidence Index for February was also released today and showed a very large drop in confidence, which is good news for rates. Looking forward to tomorrow, we'll get two days of testimony from Bernanke to Congress. His comments will be closely scrutinized by markets and could present volatility. In addition, tomorrow we'll get January's Durable Goods Orders which measures the strength of the manufacturing sector. We'll also see January New Home Sales report. Both of these reports may well be overshadowed by the Fed Chairman's testimony to congress.

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Choppy Waters for Mortgage Rates

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National Rates

Loan Type Today
30 Year Fixed   5.62
15 Year Fixed   5.47
5/1 Adjustable   5.85

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