Positive Economic News Means Higher Rates
Positive economic news and solid earnings reports are
pushing Bond prices lower today, while buoying the Stock markets midweek. This equates to Higher Interest Rates. The
closely watched S&P 500 Stock Index is at an all-time high of 1,850, due to
an improving economy coupled with the Federal Reserve's massive stimulus
program.
The Mortgage Bankers Association reported this morning
that its Market Composite Index, a measure of loan application volume, rose by
11.9% in the latest week as potential borrowers drift back into the market. The
refinance index was up 11.2%, while the purchase index increased by 11.5%.
Inflation at the wholesale level jumped in December due
to higher costs for gasoline and tobacco. The Labor Department reported that
the Producer Price Index rose by 0.4% last month, above the 0.3% expected to
the highest level since June. Over in the manufacturing sector, the New York
State Manufacturing Index rose to 12.5, its highest level since May of 2012 and
well above the 3.5 expected. The index is closely watched for it is one of the
first readings on the health of the sector.
Locking is recommended. Give me a call at 314-744-7806 to discuss your options on financing, or visit my website by clicking on the link below:
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