Mortgages rates are slightly higher this morning following worse than expected inflation data.
The Labor Department reported that the Consumer Price Index (CPI) soared by 5% on a year-over-year basis. This increase to consumer prices is the largest since May of 1991.
If you’ll remember back to yesterday’s rate update the PPI showed an increase of over 9% on a year-over-year basis which was the largest increase since 1981!
This double whammy of worse than expected inflation does not bode well for mortgage rates. For a detailed explanation as to why inflation causes mortgage rates to rise please view this link.
We are shifting our outlook to a locking stance in the near-term.
I also wanted to plug the article I wrote on my blog yesterday evening about Fannie Mae & Freddie Mac. Many of us have heard of these companies and may have a vague understanding of their role in the mortgage industry. This article is designed to help you gain a very clear understanding of their role & importance. To view click this link.