Wednesday, May 21, 2008

Last week mortgage applications fell 7.8%, with purchases falling to a five year low of -6.9%.  Oil is fast approaching $132 a Bbl today, putting a hard hammer to both the Bond and Stock market. The minutes from the last Federal Open Market Committee are released this afternoon.  As soon as it is dissected and review by investors for comments on the economy and inflation, expect a move in one direction or another. With oil still climbing, inflation is becoming the concern in the trading pits. Currently the bond is down 28 Bp since trading opened and 15 since pricing came out, putting us near a re-price for a worse. Minutes will be out after 2 pm eastern time. Any changes I will let you know. For the time now, I recommend that any client you have a signed purchase contract on to think seriously about locking the rate today.

Karl Menzer

435-849-0212

http://www.karlmenzer.com