Direction of Mortgage Rates

Hello again everyone,

I certainly don't expect to be posting about rates every day but I felt it was important to correct the comments I made yesterday. Unexpectedly, rates got better today. Here's the explaination from our rate lock department:

Retail sales in the U.S. stalled last month as cheaper gasoline limited service station receipts anddealerships sold fewer cars. Purchases excluding fuel and autos increased during the month. January sales were unchanged after a 1.2 percent gain in December that was more than previously estimated, the Commerce Department said today in Washington. Sales excluding autos and gasoline rose 0.5 percent after rising 1 percent in December. Shoppers redeemed gift cards and used the savings from lower gasoline prices to buy winter clothing and home furnishings last month. The figures show an economy that's growing at a moderate pace, a description Federal Reserve Chairman Ben S. Bernanke is likely to share with lawmakers when he begins two days of testimony on Capitol Hill today.

The market liked the retail news and MBS's are slightly better than yesterday's prices. However, we do have Bernarke speaking. It should be along then same vain as what we have been hearing. I do not see the market coming off of the little rally this morning.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com