This entry was posted on Saturday, February 24th, 2007 at 6:08 pm and is filed under Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Sacramento Mortgage Rate Update
The 30 year fixed rate closed the week unchanged at 6%.
Behind the Numbers
In a quiet week, largely devoid of significant economic reports, the main excitement was Wednesday’s CPI report which came in higher than expected at 0.2%.
The core CPI rate also rose more than expected at 0.3%, and the January year over year rose to 2.7%. This last little piece of data suggests a trend toward higher inflation that bothered both the stock and bond markets and temporarily pushed mortgage rates higher.
By week’s end however, declines in the stock market redirected some investor money back into bonds, pushing mortgage rates back down to last week’s levels For now, the Fed seems to be on hold, hoping that the recent series of rates hikes will slow the economy enough to ward off inflation without cooling things down too much.
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