June 23rd, 2008 Categories: Mortgage Update
Driven upward by food and energy price increases, the Producer Price Index (PPI) climbed by 1.4% and mortgage rates continued a slow move upward. Removing those two variables decreases the PPI to a more modest 0.2% but the annualized core reading is still sitting at 3.0% – well above nearly every expert’s comfort range.
The Federal Open Market Committee will meet later this summer and while nearly every expert is predicting that the Fed will stand pat on interest rates, the odds are increasing for a rate hike in August.
Stay tuned next time for the Gross Domestic Product (GDP) final 1st quarter numbers. Rob Clark, Preferred Mortgage, warns that if the GDP is revised from 0.09% to higher than 1.2%, we could see additional pressure to move mortgage rates upward.
The good news?
The declining market approach is being eliminated by a number of lenders. In our area that means loans up to $417,000 with 5% down and up to $727,750 with a 10% down payment.
If you or anyone you know is considering a move please give me a call. I’ll help you find you the best house and the best financing possible.