Last week the Fed told us that growth is better than they would have predicted 6 months ago signaled by greater consumer spending, durable goods purchases and some signs of increased investment. Then, this week, the Empire Manufacturing Index showed continued growth, jobless claims were better than expected, existing home sales continued to show improvement despite the doom and gloom in the media, leading economic indicators came in better than expected, and China continued to show strong growth in their economy which is a huge driver in the global economic recovery.
All in all, a good week for economic reports which means a bad week for interest rates. Remember, as the economy grows, so do inflation worries. This forces investors to raise their rates in order to recover what inflation will take away from the future value of the dollar.
So, if you are STILL worried about a meltdown in real estate, know that as the economy grows it can only push house prices and rates one way – UP.
This week 30 yr. fixed rates ranged between 4.75% & 4.875% depending on program, credit and points.
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963