We have given back some of our gains (gains in Mortgage Backed Securities aka MBS which translate to lower rates) this morning due to positive economic news and negative inflation news. The Chicago PMI, which correlates to manufacturing sector strength

Other than a big bump in the road on Thursday, Mortgages held steady throughout the week. The markets, as we discussed, made a bet on the current inflation data "not mattering" as much as it should due to recently lower commodity prices. Then

Today saw the release of the much anticipated CPI report. (consumer price index). This is one of the most closely watched gauges of inflation. As we have discussed in the past, rising inflation is not good for mortgage rates as it erodes the value of MBS. So when inflation goes up, rates tend to go up too. The consensus among economists for the CPI report today was for a .2% increase at the "core" level, which excludes food and energy prices. The index tracks both the "headline" and the "core," because

It has been recently noted by more than one financial analyst that these last two weeks have seen more "ups and downs" across all market sectors than most any other time in history. To those of use waiting to lock a mortgage rate or simply trying to follow the mortgage market this does not come as much of a surprise. Today was an ugly day for MBS (mortgage backed securities), but not as ugly as it might have been. One of the key factors adding to the carnage today was a lighter than normal trading