The vice president and chief economist of Freddie Mac, Frank Nothaft, stated that "Fixed-rate mortgage rates rose to the highest level in nearly 9 months following the recent release of the consumer price index and the producer price index. The consumer price index as well as the producer price index showed significant concern for inflation.
The reports showed consumer prices rose by 0.6% last month, the most since November of 2007.
The housing market continues to struggle in the meantime. New construction of single family homes fell in May to the weakest level since January 1991 but pending home sales for April unexpectedly rose by as much as 6.3% and mortgage applications for both home purchases and refinancing also went up last week.
Comments(0)