Warriors of Wall Street

Our “Warriors of Wall Street” will have plenty to chew on this week as we will get a look at a cornucopia of economic releases and the final Fed meeting of the year. On the calendar this week we will get a look at the producer price index, the consumer price index, housing starts and leading economic indicators. While all of these release reach the level of “biggies”, the market will really focus on what the FED has to say during their two day meeting which concludes at 2pm on Wednesday. Any hint of Bernanke and friends coming off of their current position of holding rates at current levels will send mortgage rates notably higher. While this is certainly a possibility, I believe that Big Ben and friends are not ready to take the chance of upsetting what may actually be the beginnings of a recovery in the economy. But, beware of the message that they will put out at 2pm on Wednesday.

Look for rates over the next 48 hours to meander at current levels until the FED meeting concludes on Wednesday. 30 year fixed rate mortgages are hovering at the 4.875% handle while 5 year ARMS are holding in the 3.50% range.