Rate Update for August 4, 2008

Mortgage rates are unchanged this morning despite relatively hot inflation data. 

The Commerce Department released the monthly Personal Spending Report.  Imbedded in this report is the Fed’s favorite gauge of inflation known as the Personal Consumption Expenditure Price Index.  Because of the significance this report has on inflation expectations it is very important to mortgage rates.

Watch today’s you tube video for a summary of the report and what it means to mortgage rates.  

 

Looking ahead this week, the Fed is scheduled to meet and decide on short-term interest rates.  They are widely expected to hold the Federal funds rate @ 2.00%.  However, their comments following their announcement can always impact the markets. 

Current Outlook: neutral ahead of Fed meeting