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.
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