Reports last week allude to good news for the economy. Amongst the numbers coming in, Retail Sales was reported at 0.8%, higher than expected. Building Permits also rose to their highest level in four years while Consumer Sentiment improved as well, coming in higher than expected.
Inflation was also manageable, which is a great sign for Bonds since inflation tends to hurt the value of fixed investments. A tame inflation rate is also positive for home loan rates as well, as it is tied to Mortgage Bonds.
With the good economy news, there were some reports that came in lower than expected. Housing Starts were reported lower than previously expected along with both the Philadelphia Fed Index and the Empire Manufacturing Index, both of which came in under expectations.
How do the recent economic reports impact the housing economy and home loan rates?
It’s importnat to remember, bad news can be good for home loan rates. If economy reports are good or above expectations, Stocks typically go higher as the economy is headed towards improvement. On the other side of things, if reports are bad or below expectations, investors move away from Stocks and into Bonds, helping both the Bond market as well as home loan rates.
The point to take away from this is that home loan rates continue to remain near historic lows so now is a great time to buy a new home or refinance. I will be glad to answer any questions you may have and get you started on the process to refinancing or purchasing a new home.