Rates inched lower Wednesday as mortgage-backed securities extended a rally following the downgrade of Portugal’s debt yesterday. China raised rates this morning to fight inflation, its fifth increase in recent months. The Institute for Supply Management services index fell to 53.3, below expectations. Readings above 50.0 indicate expansion in the services sector of the economy. The Mortgage Bankers Association weekly purchase activity index rose by 5%, while the refinancing activity index fell by 9%. Average reported 30-year fixed rates for the week ending July 1 rose to 4.69%, not including fees. No other data will be released today.