Rate Watch 3-16-2011

Cautiously Floating:
Stocks are down big this morning. That has been helpful for Mortgage Backed Securities. MBS are trading higher on a mixed bag of economic news, but a lack of market-shaking headlines from both Japan and the Middle East has tempered the "safe haven" buying urgency...at least for the moment. In economic news, Housing Starts fell in February and was the biggest percentage drop on a month to month basis since March 1984. The Labor Department reported that inflation at the wholesale level as measured by the Producer Price Index came in much hotter than expected. Inflation over time is bad for interest rates. If you or someone you know is considering buying, selling or refinancing real-estate please contact me at 801 668 2112.