Mortgage rates moved higher Tuesday following the release of the Producer Price Index (PPI) inflation data. The PPI rose 1.8% in November, doubling the consensus forecast of 0.9%. Core PPI, which excludes food and energy components, rose 0.5%, the largest increase since October 2008. Separately, Industrial Production increased 0.8%, above the consensus of 0.5%. Mortgage-backed securities markets are typically volatile in December due to light trading, so any movement tends to be exaggerated. Tomorrow, the Consumer Price Index will be released at 8:30 AM, and the Fed wraps up its two-day FOMC meeting at 2:15 PM. No other data will be released today.