Prices are not going up anytime soon

0
53

[ad_1]

  • Inflation affects mortgage rates; generally, higher inflation leads to higher mortgage rates.
  • Commodity prices in April saw their biggest 12-month rise in nearly 13 years.
  • But this is a temporary spike in inflation, so you don’t have to worry about rate hikes.
  • See A Selection Of The Best Mortgage Lenders Insider “

Last Wednesday, the US Bureau of Labor Statistics released Consumer price index for April 2021. The CPI tracks the value of goods and services such as food, clothing, electricity, and cars. CPI is one of the measurement tools inflation in the USA

The CPI showed that the cost of goods and services has increased by 4.9% since April last year. This is the largest annual growth since September 2008 – almost 13 years ago.

Prices have also risen 0.8% since March, although they were expected to rise by only 0.2%.

Inflation often affects mortgage rates. When inflation and employment are high, the economy is doing well. And mortgage rates go up when the economy is strong.

So, is it worth worrying about the imminent increase in mortgage rates due to high inflation? Probably no.

Why won’t mortgage rates rise due to high inflation?

Mortgage rates should not rise sharply until inflation stays high for a relatively long period of time, perhaps months.

High April Inflation Likely just temporary, not in trend.

USA see prices in April are higher than in March as new locations open up and demand for goods grows. But once that becomes the norm, when establishments reopen, supply should catch up with demand.

Before the 2020 pandemic, inflation was relatively low. So the April spike looks dramatic by comparison – which is why the numbers are much higher than 12 months ago.

Until there are prolonged periods of high inflation in the US, mortgage rates should remain low

Mortgage rates this week

All mortgage rates have gone up since last week, but you have nothing to worry about. Most of the rallies are relatively small and are probably not a sign of long-term significant surges.

IN 15 year fixed and 7/1 ARM rates decreased from last month, ARM 10/1 rates increased, and 30 year fixed rates remained the same.

Refinancing rates this week

Refinancing rates also rose this week. Some refinancing rates have risen since last month, while others have declined. Refinancing rates are generally still low.

Mortgage and refinancing rates by state

Check out the latest rates in your state using the links below.

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington
West Virginia
Wisconsin
Wyoming

about the author

Laura Grace Tarpley is editor of Personal Finance Insider covering mortgages, refinancing and lending. She is also a Certified Personal Finance Faculty (CEPF). During her five years in personal finance, she has written extensively about ways to handle loans.

[ad_2]

Source link