Mortgage Rate Update – Week of August 11, 2008
posted in Mortgages, Smyrna Vinings Real Estate, Uncategorized |Welcome back!
Smyrna Vinings Mortgage Rate Update
Week in review:
As I predicted, last week’s inflation news moved the markets. Inflation is the arch-enemy of mortgage rates and reports last week showed inflation is over the Fed’s tolerable levels. As a result, home loan rates moved higher the first part of the week. However, home loan rates staged a rally in the middle of the week because jobless claims were higher than expected and retail sales are expected to be slow this month. By the end of the week, rates ended just slightly worse than they started out.
What to expect:
The direction of home loan rates will once again by determined by economic reports through the week. On Wednesday, we have the retail sales report which is important because weakness could lead to interest rates falling. On Thursday, the Consumer Price Index is released which measures inflation at the consumer level. High inflation causes interest rates to go up.
Breg-ometer:
Next 7 days: Neutral
Next 30 days: Rates should stay in this range
Next 90 days: Higher
Courtesy of:
Bob Bregitzer
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