Last week there was good news & there was bad news – what did it mean for Raleigh Mortgage Rates?
On Friday as Consumer Sentiment rose to 75.3 & that is good news. 
This was the best level since February of 2011 however this news was tempered by the rise in oil prices that we have been seeing.
Folks, there is a ‘ying’ & a ‘yang” to higher oil prices…on the ying side of the equation — high oil prices are not very good for the economy, as consumers have to put more of their dollars into their gas tanks…meaning they have less to spend elsewhere like the mall. Now high oil prices are also inflationary as the added shipping and material costs apply upward price pressures on Producer or Wholesale goods that either have to be absorbed by the producer, thus hurting profits and the ability to expand or hire. Or the added costs get passed onto to the consumer…a la a rise in consumer inflation.
So that is the ying – what is the yang to higher oil prices? High oil prices could actually be good news for Raleigh Mortgage Rates, as the dampening effect on economic growth produces a sluggish economic environment in which Bonds (including Mortgage Bonds, to which Raleigh Home Loan Rates are tied) thrive. This is an important topic to continue watching in the weeks and months ahead.
Between some of this uncertainty from overseas being lifted, a lower unemployment rate, and better than expected economic reports, Raleigh Mortgage Rates have struggled to improve beyond some of the best levels seen over the past two weeks.
Raleigh Mortgage Rates remain near historic lows, and now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you.
This week there will be plenty of economic reports to watch for.
• Pending Home Sales will be released on Monday
• Durable Orders will be delivered on Tuesday. This report gives a look at consumer spending for products that are expected to last at least three years.
• Consumer Confidence will be released on Tuesday.
• The Chicago PMI & the ISM Index will be released on Wednesday and Thursday, respectively.
• The all-important Gross Domestic Product (GDP) report comes on Wednesday.
• Weekly Initial Jobless Claims will be released on Thursday.
• Finally, the Core Personal Consumption Expenditure (PCE) report will be released on Thursday. This is the Fed’s favorite gauge of inflation.
A Kevin Martini Fact to Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Raleigh Mortgage Rates improve, while strong economic news normally has the opposite result.
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