Inflation Strikes Back!

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Mortgage and Lending with Wisconsin Home Lending, Inc.

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.

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Rainmaker
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John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

For two years now they have said no inflation when you strip out the volatile factors.  Food and energy.  Well guess what?  Those are the two I most need.

Jul 16, 2008 04:18 AM #1
Rainer
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Jeffrey Stoub
Wisconsin Home Lending, Inc. - Waukesha, WI

Yes, it's almost stupid and insulting to not care about those.  The YTY number was over 5%... that's big.  Everyone out there is feeling the pain at the pump and the store - red peppers were 3.99/pound yesterday!  C'mon!

Jul 16, 2008 04:22 AM #2
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Rainer
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Jeffrey Stoub

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