Mortgage Rates Drop as Economic News Ease Fears of Inflation
15 June 2007
The bond market opened Friday up again after economic news was reported that was favorable to interest rates.
May’s Consumer Price Index or CPI, showed only a .1% increase in the core reading, below the .2% expected. This means that consumers are not experiencing inflation, and allowed rates to drop today.
Also, the May Industrial Production reports showed no change while a .2% increase was expected, and a downward revision of April’s data. This is also great news for mortgage rates.
Finally the University of Michigan’s Consumer Sentiment Index showed a reading of 83.7 against an expected 88.3, showing that consumers were less optimistic about their financial situation than expected. 3 for 3, all good news for mortgage rates today.
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