Mortgage rates jumped in the past 7 days because of rising oil prices. This is the staglationary fear I expected. Mortgage rates have increased to 6.0% (30 year fixed) today.
I expect mortgage rates to rise another .25% in the next 14 days for these reasons:
- Possible uncertainty at the Federal Reserve Bank.
- Oil above $125/barrel (which translates to $4/gal. gasoline at the pump)
- Inflation affecting the European economy.
Bond traders hate uncertainty so we expect a lot of volatility through Labor Day. As mortgage rates approach the 6.25% level, we should see them plateau unless inflation gets even worse.
I expect I’ll be changing the recommendation to float in 10-14 days but for now, lock all mortgage rates at loan application.
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good stuff
May 30th, 2008 at 2:22 pm
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Deborah
http://termlifeinsurance2.com
December 18th, 2008 at 8:34 pm