Daily Market Update 1/18/12

Rates were little changed Wednesday following the release of mixed economic data.  This morning, the December Producer Price Index (PPI) fell by 0.1%, below the consensus forecast of a 0.1% increase.  Core PPI, which excludes volatile food and energy components, rose by 0.3%, above expectations, and was 3.0% higher than one year ago.  Industrial Production increased by 0.4% in December, a bit less than expected.  The Mortgage Bankers Association weekly purchase activity index rose 10.3%, while the refinancing activity index surged 26.4%, to the highest level since August.  Average reported 30-year fixed rates fell to 4.06%, not including fees.