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Sacramento Mortgage Rate Update: Signs of Inflation Push Rates Higher
It was a rough week for the mortgage market. The Fed lowered short term rates only by a quarter point rather than the half-point some expected, retail sales were strong, and inflation at the wholesale and retail levels were both higher than expected.
All of this apparent economic strength handcuffs the Fed and makes the probability of further cuts in January less likely. Rates today are moving higher. Fears of inflation could prevent rates from falling further. According to Freddie Mac’s weekly survey, 30 year fixed rates rose to an average of 6.11% with half a point.
So, if you’re planning to buy a home, don’t wait for interest rates to fall. This may be as good as it gets for awhile.
Contact me for a quote, or apply for a mortgage here. I can do loans in most of the western U.S.