Not that it was a total surprise, but this morning's CPI report has hurt mortgage rates to an extent today. My long-term outlook is still that we will see lower rates again in the not-too-distant future, but for today, we are worse than yesterday. Overall, the damage is only about 35 bps right now, or about 0.125% on the rate for most programs. Not a big deal. We are still in an upward trend from our low on June 16th, and stayed above the recent low set last Friday in the previous down-day. Historically, rates hit their worst point in mid-summer (June 16th, June 11th, 2007, and mid-July 2006), and then improve from there.
Volatility is still very present, with inflation and the Fannie/Freddie news having a big impact. Stay tuned! Again, I'm not locking.