Rate Watch 10-14-2010

Cautiously Floating:
Mortgage Backed Securities are starting the day near unchanged as Wholesale inflation, as measured by the Producer Price Index, was hotter than expected, while Initial Jobless Claims rose more than anticipated in the latest week. (QE2) The Quantitative Easing discussions are causing the Dollar to be taken to the wood shed against other major currencies. This is exactly what the government has in mind and what it has accused china of doing to make our exports more attractive and less costly to foreign buyers. This has the possibility of creating jobs in the short term but is a dangerous game to play that could lead to hyper inflation and raise interest rates in the long term. Gold hits record $1,380. Crude oil is up at $83.47 per barrel. If you or someone you know is considering buying, selling or refinancing please contact me at 801 668 2112.