Rate Update April 9, 2008

Mortgage rates remain favorable this morning despite yesterday’s release of the Fed Minutes which revealed that two Fed officials dissented from the Fed’s last rate cut. The two Fed officials voiced concerns over inflation which we know is not good for mortgage rates.

Further raising concerns about inflation are higher oil prices & a weaker US Dollar. A report out this morning indicated that oil supplies fell last month which is pushing prices towards the all time high of $111.80/ barrel. This could put pressure on rates to move higher.

Current Outlook: neutral