This makes 6 consecutive days of rate increases.

So this morning’s economic reports swung mortgage rates in the direction you’re not wanting to hear.

The PPI (Producer Price Index- measures wholesale inflation) came in higher than expected, and the NY Empire manufacturing index came in much lower than expected.

Since we’ve seen the hits this morning, there would be no point in locking in losses, so continue to float if you have a transaction going on.

Folks, interest rates change daily and due to the economic environment that we are currently in, we are seeing these great low mortgage rates. You must understand that in 2010, you will undoubtedly see higher mortgage rates come across because we can’t be in a recession forever.

Take advantage of what you have in front of you and don’t look back. There are WAY too many incentives to cash in on!

Doesn’t look like there will be a risk to float until tomorrow, but realizing all the volatility that has been going on lately, if it was me, I would lock in your loan.

Tomorrow the economic calendar has jam-packed with reports:

• Producer Price Index (inflation at the wholesale level)
• New York State Manufacturing Index
• Industrial Production/Capacity utilization

Also, here’s a legislation update I just ran across as well:

This article features exclusive insight and opinions by IMPACT Mortgage Management Advocacy and Advisory Group (IMMAAG). For detailed information on this topic and more, visit www.immaag.com.

H.R. 4173: Wall Street Reform and Consumer Protection Act of 2009

Legislative Brief for Monday, December 14, 2009

On Friday, December 11, 2009, the House of Representatives overwhelmingly passed H.R. 4173, which is a heavily amended financial reform bill. The bill passed by a vote of 223-202 with no Republican support and with over two dozen Democrats voting against it.

Known as the “Wall Street Reform and Consumer Protection Act of 2009,” H.R. 4173 is the House response to the administration’s desire to create a new agency to perform the consumer protection functions previously performed by seven existing agencies. However, somewhere along its trip through the House Financial Services Committee, H.R. 4173 became much more than consumer protection. Now at over 1,270 pages, the bill continues the march to larger, more complex government and builds rather than consolidates bureaucracy.

While the original idea was to create the Consumer Financial Protection Agency, this bill – if it finds its way through the Senate and on to the President for signature – will bring along with it an earlier attempt by the House Democrats to control the mortgage industry. The March 2009 Miller/Frank Mortgage Reform and Predatory Lending Act (H.R. 1728) will be included (its not part of the 1,279 pages already in the content) in the bill as Title VII. With virtually no change from its original form, the predatory lending title will continue to assault on the mortgage industry in the name of protecting the consumer.

Currently down about 25 bp and in negative territory, MBS opened lower this morning due to Retail Sales opening up to 1.3% and Retails Sales Ex-Auto at 1.2%- both higher than expected. The Consumer Sentiment Index just came out as well and that’s up too. What all this means is that consumers, such as yourself, are more comfortable with the economy’s outlook.

When indicators show the economy is good, rates usually spike up because of the adverse relationship.

I’ll back if anything changes.

There’s no economic reports coming out today, however, MBS started in negative territory early in the morning and has rebounded back to even levels

We’re attempting to hold above the 25 DMA (Day Moving Average), and are nearing the 1st level of resistance, so I think today should be pretty quiet until this afternoon’s 10 year auction.

If you have some gamble in you, float until today’s treasury auctions, but if you want to play it safe and not kick yourself AFTER, secure any purchase or refinance transactions you are involved in, as the mortgage and bond markets are looking a little uncertain at the moment.

The auction results came back pretty good, but MBS got hit pretty hard. Currently up 16 bps for the day, however down 31 since morning rates came out which caused rates to go up earlier today.

Hope you took the lock advice earlier!