Good Morning,
The Producer Price Index (PPI) came in higher than expected this morning by more than double the forecasts. We mentioned that the PPI is another way of tracking inflation and by the looks of it our economy’s inflationary levels continue to march on. It has been 27 years since we’ve seen such a dramatic pace. If producer’s are paying higher prices they will pass on the burden to consumers, which means you pay higher prices. High inflation hurts the bond market and since mortgage interest rates are tied to the 10-year bond, they go up as well. Lock in your rates early today if you want to beat the lenders to the punch.
More news to follow…
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August 19th, 2008 at 7:41 am
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August 19th, 2008 at 8:15 am
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August 19th, 2008 at 10:26 am
[...] you read this morning’s market update and took advantage of the mortgage interest rates because the 10-year bond has started to respond to [...]
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