206619 Resource 178438 178984 178982 1213390359913 1213400041345 Controlled Mortgage Interest Rates Increase This Week.

Advice Matters in This Market

<p>Mortgage bond prices fell pushing mortgage interest rates higher.&nbsp; Inflation fears were fanned once again by Fed Chairman Bernanke with warnings that the Fed may have to begin raising rates sooner than most analysts expected.&nbsp; Stronger than expected retail sales figures piled on an already battered mortgage bond market pushing bond prices lower and rates higher.&nbsp; Oil prices remained volatile, which continued to fan inflation fears.&nbsp; For the week, interest rates on government and conventional loans rose over a full discount point.</p><p>The producer price index Tuesday will be the most important event this week.&nbsp; Housing starts, industrial production, capacity use, and leading economic indicators data may also move the market.&nbsp; Expect oil and stocks to continue to factor into trading, as inflation fears remain.</p><p><b><i>Weather</i></b></p><p /><p>The mortgage interest rate markets are subject to an enormous number of factors.&nbsp; Most analysts agree that weather can have an effect on market activity.&nbsp; Although the effects are seldom long lasting, they can be quite significant.</p><p>The <country-region /><place />United States</place /></country-region /> is the world&rsquo;s largest exporter of corn.&nbsp; Relatively rainy weather recently across the <place />Midwest</place /> portions of the <country-region /><place />United States</place /></country-region /> has delayed planting of corn.&nbsp; This caused corn prices to escalate.&nbsp; Wheat and other staples are also in high demand amid reduced supply, causing prices to rise.&nbsp; Couple these factors with rising energy costs and the picture does not look pretty.&nbsp; Higher commodity prices result in heightened inflationary fears.&nbsp; Many analysts predict the food price increases already seen most everywhere will continue.</p><p>The weather also has the potential to directly alter fuel prices.&nbsp; As we enter the hurricane season, many oil and gas fields in the Gulf along with refineries along coasts are susceptible to damage.&nbsp; If this were to occur, oil prices would almost surely rise sharply.&nbsp; Rising oil prices would do little to help mortgage bond prices already pressured by inflationary fears.&nbsp; The result would most likely be higher rates.</p><p>The economic effects of various weather occurrences may cause only temporary changes in economic activity.&nbsp; However, those times of change can have a lasting impact on people obtaining mortgages.&nbsp; Despite the rate increases seen recently, mortgage interest rates remain historically favorable for borrowers.&nbsp; Now is a great time to take advantage of rates at these levels.</p><p /> 10 application/xml false home loan rates inflation mortgage interest rates 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; .NET CLR 3.0.04506.648) 127.0.0.1 127.0.0.1 aheitland 75.160.24.218 false true false false true 178975 false false true false false false true 178438 blog blogsite/BestFlagstaffHomes/web