MMG Weekly

232330 Resource 178438 178982 178982 1242617927471 1242618049460 Controlled Mortgage Rates Down Slightly Last Week

Home loan rates continue at historic lows in volatile economic environment

Bonds and home loan rates improved slightly in the early part of last week as weak economic reports caused money to flow from stocks into bonds. Even though bonds lost some ground on Friday, home loan rates ended the week slightly improved from where they began. Core inflation has been moving slightly higher since February, as you can see in the chart. Still inflation is way down from the high for recent years set in August 2008. Remember that inflation is the enemy of bond investment and when inflation rises, the bond market will drive interest rates higher. What’s core inflation, by the way? It’s a consumer price index without the food and energy component – so, it’s everything else we buy. The increase last month was due to a huge spike in tobacco prices. Since hardly anyone smokes anymore, one wonders why that would have such an impact, but the increase for tobacco was 9.3%. That’s another reason to stop smoking if you already did not have enough. The overall consumer price index, with food and energy included, was flat, which is good since most people can only buy food and energy now. Wholesale inflation levels moved higher in April, however, driven by an increase in food prices so that may translate to higher consumer prices for food in May. This coming week will bring a number of economic reports, including the manufacturing and housing reports for April. Remember that good economic news tends to be bad news for home loan rates. So while you celebrate the improvement of the economy (whether this week or next month or the month after) remember that will mean the end of the historically low home loan rates we’ve enjoyed. Don’t miss the bottom of either home loan rates or Flagstaff home prices, visit a <a title="Flagstaff mortgage brokers" href="http://www.bestflagstaffhomes.com/bin/web/real_estate/AR49005/HOTSHEET/Flagstaff/1241930496.html" target="_blank">Flagstaff mortgage lender</a> this week and then give us a call to buy your Flagstaff home: <a title="Flagstaff real estate agents" href="http://bestflagstaffhomes.com/" target="_blank">Team Heitland at RE/MAX Peak Properties</a>. 9 application/xml false bond market Flagstaff home Flagstaff mortgage brokers Flagstaff real estate agents home loan rates inflation mortgage rates Remax in Flagstaff MMG Weekly Mortgage Market Guide Weekly Report http://www.mmgweekly.com/w/index.html?SID=55a51239dc6fe8cf8c09ec91f36f5250 Flagstaff Home Loan Lenders These are people who know the Flagstaff market and can get the job done http://www.bestflagstaffhomes.com/bin/web/real_estate/AR49005/HOTSHEET/Flagstaff/1241930496.html Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 6.0; GTB6; SLCC1; .NET CLR 2.0.50727; .NET CLR 3.5.30729; .NET CLR 3.0.30618; OfficeLiveConnector.1.3; OfficeLivePatch.0.0) 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