What a week after rising for several weeks…Raleigh mortgage rates improved a little this past week. The news on inflation was not as negative as I & many investors feared– then pepper in that and the economic growth data was somewhat mixed.
Yes, food & energy prices have been rising globally; overall inflation levels have generally stayed low. The big monthly US inflation reports released this past week revealed that core inflation remained low in January (remember core is what the Fed follows), but that it has moved higher over recent months. January CPI was under control being only 1.6% higher than one year ago. Core CPI, which excludes food and energy, was only 1.0% higher than one year ago.
That all being said, last week we also received an early sign that inflation may be higher down the road…the “Prices Paid“ component of the Philly Fed index jumped upward…this reflects that raw material costs rose. I think this is significant because sooner or later that will be passed to the consumer
No Perry Mason “smoking gun” with last weeks FOMC Minutes. The minutes revealed that disagreement was growing among Fed officials about the benefits of continuing the QE(2) which is scheduled to end in June. However, there was general agreement that the hurdle for altering the program remains very high, & investors continue to expect the Fed to complete the $600 billion in purchases of Treasury securities as originally planned. The Fed raised its forecast for 2011 GDP growth to 3.65% from their prior estimate of 3.30% in November. Perhaps the biggest surprise was that the Fed lowered its forecast for 2011 core PCE inflation levels. With all the recent evidence of rising prices, lower inflation predictions were not expected.
This week, Existing Home Sales will be released on Wednesday, and New Home Sales will come out on Thursday. Durable Orders, an important indicator of economic growth, will also be released on Thursday. Revised figures for fourth quarter Gross Domestic Product (GDP) will come out on Friday. Consumer Confidence and Consumer Sentiment will round out the Economic Calendar. AND THERE IS MORE — on Tuesday , Wednesday & Thursday there will be Treasury auction. These auctions might have a significant impact on Raleigh mortgage rates. Mortgage markets will be closed on Monday (2/21/2011) in observance of President’s Day.
So, why do I share what economic reports are coming up? The answer is simply, I want you to know that with weak economic news that normally causes money to flow out of Stocks and into Bonds…when this happens it is helping Bonds and Raleigh home loan rates improve, while strong economic news normally has the opposite result (i.e. higher Raleigh mortgage rates).
Folks, that’s why if you have been thinking about purchasing or refinancing a home, this is a great time to get started! Call or email me if you have any questions at all – I’m always happy to talk to you! Or forward this post on to someone you know who may benefit from today’s historically low rates. You can use the nifty links below to forward via “The FaceBook” or “The Twitter”.
Do not forget that today there is an amazing online workshops this evening called : 20 Things You Must Know Before Buying a Home Monday 07:30 PM click here to join now
To see other online workshops this week – check out the Home Buyer University link on the right. Remember all workshops are Free & and you can register for as many as you want.
