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Rates did go up today on some items. 30 year fixed is still holding at 5.375% at par with a couple lenders. The first of today's two important reports was December's Durable Goods Orders. It revealed a 5.2% increase in new orders last month for big-ticket items when it was expected to rise 1.5%. Today's report also showed an upward revision to November's orders of 0.6%. This means that manufacturing activity for these products was stronger the past two months than many had thought. This is considered to be negative news for bonds and mortgage rates. You may read the Daily lock Advisory for more detailed info.

Tomorrow morning brings us the initial reading of the 4th Quarter Gross Domestic Product (GDP). This data is so important because it is considered to be the best measure of economic growth. The GDP itself is the total sum of all goods and services produced in the United States. Its' results usually have a major impact on the financial markets and can cause significant changes in mortgage rates. There are three readings to each quarter's activity, each released approximately one month apart. The fi rst, which usually carries the most volatility, is expected to show an increase of 1.2%. A weaker reading would be great news for the bond market and should lead to a sizable decline in mortgage pricing.

Also tomorrow will be the results of the FOMC meeting. It began today and will adjourn at 2:15 PM ET tomorrow. It is expected to yield no change to short-term interest rates following last week's surprise .75 cut. As usual though, traders will be looking for any indication of the Fed's next move. This could bring a great deal of volatility in the markets tomorrow afternoon and lead to significant changes to mortgage rates.

This report recommends a lock for the next 60 days. No one knows for sure what tomorrow will bring. As long as you are content with your payment you need to lock. If the rate drops I am able to float the rate down for you, so you are really at no risk. Not everyone is able to do this!