Lock In The Mortgage?

Dump the ARM? Move to Canada? Inquiring minds want to know. Bloomberg (03.23.05):

"U.S. consumer prices rose the most in four months in February, adding to concerns that quickening inflation will prompt the Federal Reserve to accelerate interest- rate increases.. U.S. sales of previously owned homes fell less than forecast in February to a 6.79 million annual rate, supported by cheap mortgage rates and growing employment. Real average weekly earnings fell 0.4 percent in February, the most since a drop of 0.5 percent in November, the Labor Department also said today. Fed officials say they've seen little evidence that higher prices are working through to wage demands, one of the situations that might add to inflation." U.S. Economy: Consumer Prices Rise by Most in Four Months

Is that hiss a little air coming out of the housing balloon? Reuters (03.23.05):

"Applications for U.S. home mortgages decreased last week as rising interest rates led to a sizable decrease in refinancing activity and purchasing, an industry group said on Wednesday. 'The increase in mortgage rates has reduced application activity across the board, particularly for refinances. Refinance applications are down more than 60 percent relative to this time last year,' Michael Fratantoni, MBA's senior director of single family research and economics, said in a press release. Interest rates on fixed 30-year loans edged up last week, and have been steadily climbing in recent weeks." Mortgage Applications Down Last Week-MBA

Check out CalculatedRisk, "Forbes: Homeowners in Hock".