Rate Watch 3-7-2011

Alert to Lock:
Higher oil prices are the story today with problems continuing in the Middle East. This could add to worries about inflation. Inflation erodes Treasury Bonds and Mortgage Backed Securities fixed returns over time and is a main threat to the value of long-dated Bonds. Stocks opened higher this morning but sellers arose due in part, that rising oil prices could stymie an economic recovery and on profit taking. The Dow lost 79.85 to 12,090.03, the S&P 500 fell 11.02 to 1,310.13. Light Sweet Crude oil settled at $105.44/barrel up $1.02, a 29-month high. There are no economic reports due for release tomorrow. If you or someone you know is considering buying, selling or refinancing please contact me at 801 668 2112.