This past week we saw inflation still in hibernation mode as the producer price index and the consumer price index both came in lower than last month. But don’t be fooled, our economy is moving forward, albeit slowly. Year over year inflation as measured by the consumer price index is 2% above last year with the core number (stripping out food and energy) at approximately 1% above last year. In addition, consumer sentiment numbers came out positive and that shows a hopeful outlook is still out there. Europe still overhangs the markets, and so with no inflation on the horizon and worries in Europe still making ‘fear’ drive money into bonds, rates remained at all time lows.
I’ll quote Barry Habib, one of my favorite analysts. “There is no fundamental reason why interest rates – and more importantly to us, mortgage rates – should be this low. The confluence of factors all coming together at the same time have made for an incredible low interest rate opportunity, but it won’t last long, and can change very quickly. Borrowers have temporarily been given this gift of historically low rates. It’s our job to help them see and capitalize on this opportunity, before it is gone.” Mr. Habib was commenting on Alan Greenspan’s speech this week where Mr. Greenspan said, “Long-term rate increases can emerge with unexpected suddenness.”
So, it seems that ‘making hay while the sun shines’ would apply to both the season and the rate environment. Hope you are enjoying your summer.
Oklahoma State Bond Authority still has the money available with a rate of 5.25% and 3.5% Down Payment Assistance.
This week rates ranged between 4.625% to 4.875% depending on program, credit and points.
HOPE YOU ALL HAD A WONDERFUL FATHERS DAY!!
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963