What is going on with inflation in Raleigh & how does it effect Raleigh home loan rates

What is going on with inflation in Raleigh & how does it effect Raleigh home loan rates

QUESTION:What’s going on with inflation in Raleigh & how does it effectRaleigh Home Loan Rates?

ANSWER: Contrary to what the Fed has said about inflation moderating, year-over-year inflation is on the rise. In fact, the headline Producer Price Index (PPI) was reported up again last month. In addition, the Consumer Price Index (CPI) was reported last month at a year-over-year level of 3.9%, which is more than double from the 1.6% level in January.

Remember, inflation is the archenemy of Bonds & to Raleigh Home Loan Rates. The concept is very simple: If inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as Raleigh Home Loan Rates are tied to Mortgage Bonds, this would mean home loan rates move higher.

If you have any questions about how inflation and economic news might impact the home loan rate you can get, please call or email today. It will only take a few moments to discuss what’s going on based on your unique goals and financial situation.

Volatility is the word that describes Raleigh Mortgage Rates last week – THE WEEKLY KEVIN MARTINI with SunTrust Mortgage

Volatility is the word that describes Raleigh Mortgage Rates last week – THE WEEKLY KEVIN MARTINI with SunTrust Mortgage

There is one word to describe Raleigh Mortgage Rates last week…that words would be volatility! Why such volatility…well, issues in Europe all the way to this past Friday’s Job’s Report.

With Friday’s Jobs Report from the Bureau of Labor Statistics was a big market mover, showing that 80K jobs were created in October –in addition, 104K private sector jobs were created & the unemployment rate dropped to 9%, from a previous reading of 9.1%. A big positive in the report was once again upward revisions to prior month’s readings, which showed 102K more jobs created in the 2 previous months than what was originally reported.

The takeaway from the report is that it doesn’t appear the economy is slipping into another recession! The labor market continues to create jobs, but at a very slow and uneven pace. Until we see significant job growth–north of 150,000 each month, for a sustained amount of time–we won’t see meaningful improvement in the economy or the unemployment rate. This turn means that Cary Home Loan Rates & Raleigh Mortgage Rates should continue to hover at low levels but expect volatility.

Fed Chairman Ben Bernanke said Wednesday that purchases of Mortgage Bonds are being considered–which is another factor that could benefitRaleigh Mortgage Rates & Cary Home Loan Rates.

The bottom line is that home loan rates are still near historic lows, which makes now a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.