Mortgage rates rose late Tuesday as holiday trading and low production affected the bond market. Treasuries ended a two-day drop as growth in consumer prices grew less than expected, which bolstered the case the Fed might keep borrowing costs at a record low. The price index for personal consumption rose .9 percent in November falling short of the Fed’s long term target of 2 percent. The Labor Department is likely to say jobless claims decreased by 34,000 last week in a report due out today. The stronger the economic data the greater the expectation that the Fed will begin to taper bond purchases at a faster rate.
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