After dropping four straight days in a row, the stock market is flat on the day. Mortgage pricing continues trading in a flattish pattern but is looking upward, meaning that interest rates are really trying to improve. Because they lock in a bank for 30 years, they tend to go down more slowly than other debt instruments. The 10 Year has fallen to 3.46% from the high of 4.34% a month ago. The Two Year is also down about 1/2% from the high, but since that tracks the Fed Funds Rate, I expect it to turn back northward heading into next week’s FOMC meeting. Today’s Productivity Report showed that Unit Labor Costs rose 2.4% YOY, below the 3.1% expected gain and more lower (that sounds funny) than last month’s 3.5% computation. Labor costs are a big driver of inflation and account for 69% of GDP. Oil & gas account for 8% of our GDP, so you add that to the savings of fuel dropping 30% since July and we’ve a big head start on lowering the cost of everything without increasing borrowing costs.