Home borrowing costs were unchanged in the latest week and remain just above record lows. The Mortgage Bankers Association (MBA) reports that the 30-year fixed-rate mortgage held steady at 3.03% with 0.32 in points for the week ending September 10, 2021. Within the report it showed that the Market Composite Index rose 0.3%, the Refinance Index declined 3.0% while the Purchase Index jumped 8%. Mike Fratantoni, MBA's Senior Vice President and Chief Economist said, "The very competitive purchase market continues to put upward pressure on sales prices."
Oil prices are on the rise which could be a sign of the economy picking up as demand increases. WTI oil is near $73/bbl, up from $61 in early August. Some other effects of high oil prices - it's a tax that weighs on consumer spending and consumer spending makes up two-thirds of our GDP. Higher oil is also inflationary as oil is an ingredient in many products - this adds to wholesale/producer prices. The rise in oil prices hasn't hit motorists at the pump yet with the national average price for a regular gallon of gasoline at $3.18, unchanged from a month ago.