Austin loan officer John Schutze shares his weekend mortgage rate update:
œMortgage rates end the week with little change.
Mortgage rates are under pressure to increase. These two primary factors are the cause:
First, the hot stock market (sparked by higher than expected earnings from several major companies and banks) is drawing money away from mortgage bonds.
Plus as we mentioned last week, the Consumer Price Index (CPI) for June was released on Wednesday. It showed prices rose 0.7% in June which was a little more than most economists™ prediction of 0.6%.
This didn’t have a huge effect in the short term but Walls Street and the Fed will keep a close watch. If the July and August CPI numbers remain at this level, inflation concerns will likely cause rates to rise.
John identifies loan programs for Austin home buyers and blogs about Austin mortgages. He’s an expert on theTDHCA 90 day downpayment loan program which allows first time buyers to borrow the federal tax credit for use in their closings.