Rate Watch 10-15-2009

Alert to Lock:
Mortgage Backed Securities are down this morning. Stocks are down as well. Crude oil is up this morning on supply concerns and a weakening dollar. Crude is presently at its highest level of the year at 77.43 per barrel. Roller coaster trading so far today in all markets.
National foreclosure rates up 5% from 2nd quarter and up 23% from a year ago.
Core Consumer Price Index was reported higher than expected, indicating that inflationary forces may be underway. Remember, inflation is harmful to Bonds and interest rates. Also adding pressure to Bonds as we go forward will be the Fed's plan to scale back its purchases of Mortgage Backed Securities. The bottom line is that the pressure to keep rates at these low levels will continue to wane over the upcoming weeks and months. So we are probably seeing the lowest rates for the foreseeable future.
If you or someone you know is considering buying, selling or refinancing please contact me at 801 668 2112.