This week we saw a familiar story in the economy: Good news, bad news. Housing starts were up but permits were down. The number for industrial production came in way up from last December but the Philly Fed Index was lower.
That said, the big news was the producer price index and the consumer price index. Both are measures of inflation. If you analize January’s number for the consumer price index it would give us an inflation rate of over 4%. So clearly inflation is coming back in the picture. However, there is still enough weakness in employment to keep a lid on price increases for the time being. But as soon as companies start hiring, the lid will be off.
The good news is that these inflation precursors didn’t make rates go up. In fact rates moderated just a bit because of the uncertainty in the Middle East. Remember, fear causes investors to run to safety and, as I’ve said before, if you’re going to give me your money anyway, I don’t have to give you as much interest to get it. This dynamic helped keep rates in check.
The Oklahoma State Bond Authority increased the Rate on the Program to 5.50% with 3.5% Down Payment Assistance. There is still just over $4,800,000.00 available!
This week 30 yr. fixed rates remained between 4.875% and 5.125% depending on program, credit and points.
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963