Rate Watch 12-8-2010

Alert to Lock:
Mortgage Backed Securities have had a rough couple of weeks. MBS are down hard again this morning.
There are no economic data reports due for release today in a week that is short on reports. The U.S. Bond markets continue to move lower after news that the Obama administration has agreed to extend the Bush-era tax cuts for 2 years raising fears of inflation down the road and a ballooning deficit. The Mortgage Bankers Association released it Market Composite Index, a measure of mortgage loan application volume, for the latest week falling 0.9%. The refinance gauge decreased 1.4%, while the purchase index increased 1.8%. The U.S. Treasury sold its remaining position in shares of Citigroup on Monday that were acquired when the government bailed out the financial services giant with taxpayer support in the amount of $45 billion. The Treasury said it netted a profit of $12 billion from the entire stake. The Labor Department reported on Tuesday that government and businesses advertised 12% more jobs in October than had been available in September. The 12% rise equates into 3.4 million jobs advertised and reverses losses for July and August. It was 30 years ago today that John Lennon was killed in New your by Mark David Chapman. If you or someone you know is considering buying, selling or refinancing please contact me at 801 668 2112.