Inflation Better than Expected- Rates Expected to Rise
May 14th, 2008 Categories: FAQs About Charlotte
Lock that Rate Today?
from RateLink, via Myers Park Mortgage
“Mortgage bond prices have taken a large hit and that is applying upward pressure on mortgage interest rates. Mortgage rates are moving upward as stocks move higher in value.
In the news this morning, consumer prices rose 0.2% while the core rate, which excludes the volatile food and energy costs rose 0.1%. Analysts were expecting CPI to rise 0.3% and 0.2% respectively. The lower than expected inflation data has traders hopeful overall price pressures will decline. Inflation is the erosion of the value of money received in the future (like interest payments on bonds) therefore when inflation is present investors demand a higher yield.”
Time to Lock That Rate? Sure looks that way. tm
IMPORTANT NOTE - although rates are rising hard right this moment, inflation is still BAD for rates long term. This means that if you have the stomach to wait this initial reaction out, we should see rates drop in the near future!
…just a little sunshine for you!!
Hey Terry-
Just stopped in to say hi.
My broker has all kinds of sayings:
It’s easier to work in the market you know then the market you don’t know.
And another favorite of mine is:
People are waiting to buy- but the people should be buying and waiting. You never know the bottom of the market until it starts going up - and you look back at the data.
——–
People seem to think that the interest rate is the only thing they should be looking at when buying a housse- but now- rates are still at historic lows and prices are low- so why wait?
cya terry,
Mary