Rate Watch 9-15-2009

Alert to Lock:
Mortgage Bonds are trading lower this morning after the Producer Price Index came in more than double expectations, prompting fears of wholesale inflation. Retail Sales for last month were reported at the largest monthly increase in three years, due largely to the Cash for Clunkers program. Additionally, the New York State Manufacturing Index climbed to its highest level since late 2007. However, this may indicate a temporary boost for manufacturing, rather than a true uptick in business activity.

Fed Chairman Bernanke speaking to a forum this morning at the Brookings Institution, a think-tank, said there is no longer widespread fear of a financial collapse and economic activity is leveling out. However, the recovery is likely to be slow.

Stocks and Mortgage Backed Securities have seesawed this morning both bouncing from positive to negative territory. Crude Oil higher this morning at $69.41 / barrel.

The 158 Year Old Lehman Brothers collapsed 1 year ago today sending shock waves around the global markets.

If you or anyone you know is considering buying, selling or refinancing please contact me at 801 668 2112