ok - time to flagellate a deceased equine! (Beat a dead horse)
The two big news items of the week were the Core Consumer Price Index remaining steady and the Philadelphia Fed Index worsening significantly. The implications of the Core CPI was not lost on traders showing inflation is still a possible risk, The Philly Fed Index though just a regional index correlates to how the national index will come out on better than 70% accuracy.
Overall - the FNMA 5.5% 30 year bond went down almost 80 bps. This translates into rates worsening by .8% (If last week a 30 year mortgage could be had for 5.5%, then this week it would be 6.3%)
The stock market on the other hand (other than having 5 fingers) gained less than 50 points.
Currently the afore mentioned bond is caught between the 100 and 200 day moving average. Next week is going to be another roller coaster as news will be coming from several different sectors showing the relative strength or weakness in the economy. Remember that bad economic news will translate into good mortgage rates and vice versa.
Best advice to offer is not to play the rate game. If your mortgage professional suggest you to lock - they are hopefully looking at the same news and reports as here.
Past week's advice
To learn why one should Float or Lock -
Check out Should I float? Should I lock? & Reasons to Float or Lock
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