Not that it was a total surprise, but this morning's CPI report has hurt mortgage rates to an extent today. My long-term outlook is still that we will see lower rates again in the not-too-distant future, but for today, we are worse than yesterday. Overall, the damage is only about 35 bps right now, or about 0.125% on the rate for most programs. Not a big deal. We are still in an upward trend from our low on June 16th, and stayed above the recent low set last Friday in the previous down-day. Historically, rates hit their worst point in mid-summer (June 16th, June 11th, 2007, and mid-July 2006), and then improve from there.
Volatility is still very present, with inflation and the Fannie/Freddie news having a big impact. Stay tuned! Again, I'm not locking.
For two years now they have said no inflation when you strip out the volatile factors. Food and energy. Well guess what? Those are the two I most need.
Yes, it's almost stupid and insulting to not care about those. The YTY number was over 5%... that's big. Everyone out there is feeling the pain at the pump and the store - red peppers were 3.99/pound yesterday! C'mon!