Understanding Mortgage Rates | dripp inc | Home Equity | Refinancing and Remortgage Guide

Good Morning,

We saw a totally opposite reaction to the inflationary concerns yesterday from the bond market and mortgage interest rates. Bonds should have been getting sold and rates should have been going up because of the high inflationary reading from the Consumer Price Index (CPI). Instead, bonds were being purchased and rates slightly improved even though high inflation is the number one killer of the bond market. I briefly explained this yesterday. Click here to read…

Today looks to be another steady day with a slight chance of improving rates. The reason for this is that Consumer Sentiment was slightly lower than expected this morning, which basically means that people are less confident about their finances than analysts expected. The numbers were not dramatically off from what was forecasted, so do not expect any miracle interest rates. Consumer Sentiment was nevertheless lower even though the sun is shining and gas prices are coming down. Stay in touch and wait for the end of the day before you lock.

Now, we are definitely not rooting for people’s confidence to be low, but it definitely helps mortgage interest rates when it is.

More news will be released later today, with a brief outlook of what to expect next week.