Rate Update for August 13, 2008
Rates are slightly lower this morning as volatility in the financial markets continues. In the past four days of ‘rate update’ we’ve reported changes (up or down) in interest rates which is a rare occurrence.
Much of the credit for lower mortgage rates can be credited towards a weak stock market. Yesterday the markets dropped approximately 1% on renewed credit fears and today the Dow Jones Industrial Average is off by over 150 points thanks to a weak retail sales report. For an explanation on how a weak stock market can help lower mortgage rates read this link.
Tomorrow brings the Consumer Price Index (CPI) report. Should Core CPI come in less than it did last month it would be a good sign for mortgage rates. However, should Core CPI edge higher we would likely see higher mortgage rates by the end of the day. We’ll report back tomorrow with results.