Last week saw another increase in mortgage rates due to the growing consensus that the best rates may be behind us.  This coupled with the increase in home pricing should urge potential home buyers to act now.

This week has a lot of economic data, which will most likely result in market volatility.  These fluctuations may allow consumers to capitalize on some of the rebate lost last week.

Today, retail sales came in higher than expected, easing concerns that Americans are holding back on spending.

As the Yen continues to lose value, as a result of Japan's effort to weaken its currency, has lead to a decline in demand for US bonds.

There is no evidence of the Fed ending its stimulus plan, but speculation is that the Fed will end its monthly buying of treasuries and mortgages earlier than previously announced.

Professionals do not currently see any evidence of rebound in the short term, however probability shows the likelihood of some rebound, the extent of which remains unknown.

ADVICE:  Remain in constant contact with your mortgage professional this week, as it will be necessary to do so to capitalize on any improvements that result from MBS;s daily swing.

- Michael Corboy