Daily Rate Lock

This subject will be recurring to give you current information upon which to make an informed decision as to whether or not to lock in an interest rate for any home mortgage loan you might be considering. This is only my opinion of what I would do if I were financing/refinancing a home and cannot be guaranteed to be in the best interest of any and all borrowers.

The first piece of big news this week (12/10-12/14) will come out of Tuesday's final 2007 meeting of the Federal Open Market Committee (FOMC). Their decision on what to do with interest rates will be reported in their post meeting statement. There is no clear consensus on what they will do, but, if I were a betting man, I'd wager a quarter point reduction in the fed funds rate.

Thursday sees the release of two important pieces of data -- November's Retail Sales report and the Producer Price Index (PPI). In both cases, weaker than expected results typically result in decreasing mortgage rates while stronger than expected numbers put pressure on mortgage rates to increase.

Friday also sees the release of two pieces of data -- November's Consumer Price Index (CPI) and the Industrial Production report. In both the CPI and Industrial Production report, if inflationary pressures are greater than expected (numbers are stronger than anticipated), this typically results in rising interest rates.

This week stands to be a rather volatile one, therefore, I would lock in my rate if I were considering financing/refinancing a home and my anticipated closing date was anytime within the next three months.