Rate Watch 2-19-2010

Alert to Lock:
Mortgage Backed Securities have had a wild morning and are under continued selling pressure even in the face of relatively tame consumer inflation data. The Consumer Price Index, which measures prices US consumers pay, came in lower than expected for January. When volatile food and energy prices are removed from the equation, the Index actually fell. The last time that happened was 28 years ago. MBS and Stocks are near unchanged levels after being down significantly earlier this morning. Additionally this morning the Federal Reserve raised the discount rate to .75% from .50%. The FED raised the discount rate sensing that interest rates for consumers may rise in 2010. The discount rate is the rate in which eligible depository institutions are charged to borrow short-term funds from a Federal Reserve Bank. Crude Oil is near unchanged levels today @ $78.81 Per Barrel. If you or someone you know is considering buying, selling or refinancing please contact me at 801 668 2112.