Rates up on Productivity Report

4th Quarter Productivity and Costs data exceed expectations today, and rates increased on resulting concerns about inflation. Rates should increase by approximately .25 to the price today. The Labor Department reported that this productivity gain was 1.8% annually, much greater than the .5% expected. Labor costs were in check with expectations. When the economy slows, usually productivity drops off as well, as companies are often left with an excess of employees, and not enough work. This report contradicted such an assumption.

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Expect significant mortgage rate movement today with the release of CPI.

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Choppy Waters for Mortgage Rates

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30 Year Fixed   5.63
15 Year Fixed   5.47
5/1 Adjustable   5.85

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