July 22, 2008 | Mortgage Rates are at their worst level in 2008... Inflation, Inflation, Inflation!  Today the Philly Fed President Charlie Plosser said that inflation is too high and the Fed would have to "back up their words with action".  The Fed will need to begin hiking the Federal Funds rate as soon as possible to fight inflation.  It seams that we are at the rock bottom with mortgage rates assuming the Fed starts to take action and raise their Feds Cut Rate.  Mortgage backed securities are -44bp on the day at 99.12.