http://MikesDailyMarketReport.com: Inflation for the Wholesale sector spiked in November, as the PPI rose 0.8%. It's Core PPI (excludes food & energy) rose 0.7%; and it's YoY rose from 7.0% in October to 7.7% in November. Highest in Decades!!! Today starts the first of 2 days for the FOMC, whom already indicated some upcoming policy changes (most notably increasing the pace of tapering; which also, alludes to them raising interest rates thereafter). Based on today's inflation data, it's spooking the Markets a bit, as many projections are now coming out that the Fed may double their pace of tapering, which will end in March 2022; and start first of 3 possible rate hikes in June 2022 (with 3 more hikes in 2023). We won't know for certain until tomorrow when the Fed will provide their announcement and investors review the Dot Plot. This has investment dollars flowing from stocks to MBS again today, as a flight to safety. MBS started the day down much lower, but has improved a little. It's currently Down 9bps. Some Lenders whom priced from the much lower standing improved their pricing for Mortgage Rates. All in all, Mortgage Rates are more or less, Unchanged from yesterday's close. Meanwhile, Yields have been riding a seesaw; and is currently just under 1.44%.
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