Rate update August 15, 2008

Rates are effectively unchanged again this morning.

Following yesterday’s hot CPI data we got a slew of inflation related news that is helping support mortgage-backed bond prices today.

*Gold prices are finishing the week with one of the steepest weekly declines since March.  Gold prices tend to reflect the market’s future inflation expectations so the fact that prices are coming down is a good sign for future inflation.

*Oil prices also continue to fall.  Crude oil is now trading down around $112 per barrel which is over 20% off recent highs.

Lower energy & commodity prices bode well for mortgage rates because they will help to ease inflationary concerns. 

However, we remain concerned about the technical trading picture for bonds.  Bonds face significant overhead resistance which is why we continue to favor locking. 

Current Outlook: locking

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.