204321 Resource 178438 178984 178982 1210969264005 1211038329909 Controlled Home Mortgage Interest Rates Were The Lowest of the Week Until Noon.

Informed Buyers Locked Their Home Loan This Morning.

<p><b><i>Market Comment</i></b></p><p /><p><br /><b>Mortgage bond prices remained near unchanged last week holding mortgage interest rates steady.&nbsp; Trade continued to be extremely volatile with discount points rising and falling by as much as 1/2 on a near daily basis.&nbsp; Once again, gyrating oil prices caused much of the volatility.&nbsp; The price of a barrel moved as much as $6.00 in a trading day.&nbsp; Rising oil prices stoked inflation fears and resulted in mortgage rate spikes.</b></p><p><b></b></p><p>For the week, interest rates on government and conventional loans fell by about 1/8 of a discount point.</p><p>The producer price index data Tuesday will be the most important event this week.&nbsp; Leading economic indicators and the Fed minutes have the potential to cause mortgage interest rate volatility.&nbsp; The bond market closes early Friday ahead of the Memorial Holiday the following Monday.</p><p><b><i>Producer Price Index</i></b></p><p /><p>The producer price index is a measure of prices at the producer level and is important because it is a primary inflation indicator released each month.&nbsp; Investors are typically able to gain an initial indication of inflationary pressures at the producer level from the release.&nbsp; If producer prices are increasing, there is a tendency for producers to pass the increases on to consumers in the form of higher priced goods.&nbsp; It is important to note that the PPI is only a measure of goods, while the consumer price index is a measure of goods and services.&nbsp; It is possible for the price of goods to remain stable, while the price of services increases.&nbsp; In this scenario PPI would do little to warn of a change in inflationary pressures, while the CPI report would provide an indication of the inflationary effects of the service component.&nbsp; This distinction between the two reports shows why most analysts view the CPI as a more accurate indicator of inflation.&nbsp; </p><p>Energy price increases have many analysts concerned about the threat of inflation.&nbsp; Market participants will gain valuable insight into potential volatility in the financial markets from the release.&nbsp; </p><p>If this week&rsquo;s producer price index release indicates falling price pressures, mortgage interest rates may improve.&nbsp; However, if the PPI release indicates an increase in price pressures, mortgage interest rates may push higher.</p><p>Mortgage interest rates remain favorable.&nbsp; This week could result in market swings that are favorable or negative in nature.&nbsp; Considering the heightened possibility for mortgage interest rate volatility, a cautious approach to interest rate exposure is prudent.</p> 10 application/xml false home loan rates inflation mortgage bond prices mortgage interest rates mortgage market mortgage rates Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727; .NET CLR 3.0.04506.30) 127.0.0.1 127.0.0.1 aheitland 24.121.32.9 false true false false true 178975 false false true false false false true 178438 blog blogsite/BestFlagstaffHomes/web