Mortgage-rates have now increased by .25%-.375% since we shifted our outlook to locking on Friday, May 9th. The cause of the rate increase has been strength in the stock market and worse than expected inflation data.
However, this morning’s Consumer Price Index (CPI) report may help rates reverse course. The monthly report which is an important gauge on inflation showed that prices at the consumer level of our economy increased less than analysts’ expectations. This may be a sign that the weaker economy is helping curb the inflationary pressure of higher commodity prices.
We are going to shift our outlook to floating with the hopes that this news coupled with positive technical trading patterns will help mortgage rates move back lower.
Current Outlook: floating