Mortgage rates edged lower Friday as investors became increasingly concerned about the chances that a deal would be reached to avoid the “fiscal cliff” before year end. Last night, Republicans in the House failed to agree on a more modest “Plan B” approach, which President Obama and Democrats in the Senate had already dismissed as inadequate. In economic news, November Durable Goods Orders increased by 0.7%, beating forecast. Personal Income rose 0.6%, above the consensus of 0.4%. The Core PCE price index, the Fed’s preferred measure of inflation, was unchanged in November, and was a tame 1.5% higher than one year ago. Consumer Sentiment fell to 72.9, below expectations. No other key data will be released today. After today, I will be out until January 2nd. Have a Merry Christmas and Happy New Year!