Looking for mortgage news in Austin? Here’s John Schutze™s mortgage rate update:
“Mortgage rates increased about .125% across the board this week.
The Fed left the Fed Funds target rate at 0-.25%, but commented that while the economy has still contracted over the past month, “the pace of contraction appears to be somewhat slower.” Another interpretation could be “the ship is still sinking but it appears to be sinking slower than before.”
These comments were enough to cause the stock market to close higher on Wednesday. In this market, any news that’s perceived to be good for the economy will likely cause the stock market to rise. When stocks are higher mortgage rates tend to trend higher as well which is what happened this week.
Some good news for rates was the Core Personal Consumption Expenditures Index which showed a year-over-year increase of 1.8% in March. The Fed likes to see this number remain under 2.0%. The PCE measures the price changes of consumer goods and services and readings under 2.0% indicates that inflation isn’t a primary concern at least in the short term.
Many economists are concerned about inflation ticking up during the next few years. Inflation concerns tend to cause rates to increase so it’s important to keep a watch on the PCE report.”
Check out John™s Austin mortgage blog for more news on local lending rates.