Mortgage rates rose Tuesday after June’s Retail Sales report came in came in slightly better than expected.
Since falling to near 5% last week, 30 year fixed conforming mortgage rates have risen by almost .375%.
It’s a similar pattern we’ve seen over the last 10 months, rates drift down to near their “all-time lows”, and then surge higher over just a few days time.
Many people thought mortgage rates would break below 5%, but the market had other ideas.
Last month’s Producer Price Index exceeded expectations, too.
A rising PPI is important to rate shoppers because if business costs are rising, consumer costs will eventually rise, too, as businesses share their expenses with American households.
This is inflationary, of course, and inflation is awful for mortgage rates. It’s part of the reason why mortgage rates closed higher again Tuesday.
All year long, mortgage rates have been eratic and unpredictable. Last week was no different and it’s why you shouldn’t necessarily try to time for a market bottom with mortgage rates.
If an interest rate looks good to you today and the payment is manageable, consider locking it in. In this market there’s no guarantees.
Posted by Scott Fowler. Scott is a Partner, Sr. Loan Officer with Horizon Financial. Scott can be reached toll free @ 877-627-9211 x 104 or email SFowler@HorizonFinancial.org . Visit Scott’s website @ www.ScottFowlerTeam.com .
