Raleigh Home Loan Rates move because of 2 reasons…economic news & technical factors. No sunglasses were needs with the news that came out last week. When this occurs it generally means that Raleigh Home Loan Rates improve however that was not the case last week. So the question for your trusted mortgage banker is – why Kevin Martini did Raleigh - Cary home loan rates improve last week?
OK – so here is the break down…Raleigh home loan rates & Cary home loan rates come from the bond market…yes, we had some “soft” news last week however the news was weak in areas that I expected. Yes, new home construction (i.e. housing starts & building permits) are down. Remember --- REAL ESTATE IS LOCAL & THESE NUMBERS ARE NATIONAL NUMBERS. Now Batman & Spiderman have a nemesis…so does the bond market – the nemesis to the bond market is inflation. Just look at that Empire State Index that was reported last week…it shared the HIGHEST level of inflation in 3 years – then consider that last week the unemployment claims level was at the low last week – more people working…more people with pay checks to spend…more people then are in the malls buying…this is good for the economy however confirms my inflation thesis. So positive employment data with a risk of inflation trumps the soft economic data, hence this is why Raleigh mortgage rates did not improve last week.
That being said, Cary home loan rates are already historically low & represent an ideal situation if buying a home or considering refinancing. Don’t look in the rear view mirror – look ahead over the hood ornament … rates will move higher.
All good things come to an end…just think this week American Idol will be over until next year. The good news it will be back next year however interest rates that start with a 4 --- I truly do not believe will be back here next season.
I think this week we will see some good news with the reports that will be hitting the wire…we have new home sales, we have pending home sales, we have durable good orders , we have a look at the Gross Domestic Product (GDP), we have consumer sentiment , we have personal spending & we have personal income. Then don’t forget the finale for Dancing with the Stars & American Idol. WHAT A WEEK!
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