Mortgage Rate Update January 14, 2011
Mortgage rates are better this morning. Rates continue to bounce between technical layers of support and resistance.
The news wires were buzzing this morning with a laundry list of economic data. The report grabbing the most attention thus far is the retail sales data from the Commerce Department. Although the report showed solid gains, retail sales increased by less than expectations. 
As we know inflation is the primary driver of mortgage rates. This morning’s Consumer Price Index report from the Labor Department showed that prices paid by consumers increased by 1.5% during 2010. However, month-to-month price increased surged in December mostly driven by food and energy prices. We’ll need to keep an eye on inflation over the coming months.
The markets are also digesting a mixed bag of data concerning industrial production, consumer sentiment, and business inventories. At this point interest rates continue to march along in a sideways pattern bouncing in between a .25% range. Since rates are currently at the lower end of the range I will commit to locking today.
Current outlook: locking
Posted: January 14th, 2011 under Rate Update.
Tags: jan 14 2011 MBS, jan 14 2011 mortgage rates, jan 14 2011 outlook for rates, rate update jan 14 2011