This entry was posted on Tuesday, June 19th, 2007 at 5:18 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: What the hell happened?
I came back from two weeks vacation last Tuesday to find rates half a point higher than when I left. You just can’t take your eye off things for a minute anymore. But seriously, 6.625% at one point. That’s a serious increase for a two week period.
So What Happened?
Near as I can tell, concerns about global inflation, a weak dollar that causes it’s own inflationary vortex, and a strong economy with it’s hint about higher wage costs caused bonds to sell off and pushed rates higher. Now since then, last week’s domestic inflation at both wholesale and retail levels were benign and this week’s housing weakness and builder confidence are again suggesting economic slowdown. The key 10 year Treasury is trying to duck below the 5% support level.
We’ll see. I’m looking for rates to be pretty stable the rest of the year, hopefully with a possible of lower rates in the Spring as consumer spending slows and retail sales weaken. They’ve got to, right?
June 20th, 2007 at 6:19 am
I felt the interest rates increase. Lost a deal for my seller bacause of government delays and the buyer fell out of qualification because of the increase in interest rates. I wonder how many more across the nation experienced the same.