another mortgage rate update

Economic reports this morning indicate that the economy is weaker than expected. The biggest surprise is a large drop in industrial production, although the Consumer Price Index also helped lessen inflation concerns.

It is fairly encouraging to me that the markets have stabilized enough that the economic reports are impacting market swings. Up until the last few days it did not matter what the economy was doing - investors were pulling out of the stock and the bond markets.

The Daily Rate Advisory is making a lock recommendation recommendation if you are closing in 7 days, but a float recommendation for loans closing later than 7 days.

The thinking is that rates will not significantly change in the next week, but for longer times the economy is expected to show continued weakness.

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