Dennis' Mortgage Blog

A rather confusing day for those following investment markets.

Stock prices are down, ostensibly because rising commodity prices, specifically higher oil costs.  Concerned about the inherent inflation in oil prices rising stock owners have sold off pretty heavy today.

Interestingly the high oil prices that concern stock investors dropped over 3% today to just over $106 per barrel today.  No telling how far stocks would have dropped had oil gone up today instead of down.

Over all the bad news for owners of stocks and oil futures was good news for mortgage rates as the proceeds from the stock and oil sell offs went into bonds.  If trend continues we may see a rally in mortgages helping mortgage rates.

Personally I don't see a rally coming as we have retail sales, producer price index and consumer price index reports for March being released in the next couple of days.  Based on employment numbers and other factors we have seen released recently these numbers should show some recovery in the economy.

Positive economic news is negative for bonds and mortgage rates--or is typically but the way markets have reacted this year predictions are more of a guess than ever.

Safety is my policy, if you can lock through your transaction period then my advice is to lock.

Mortgage rates continue to remain low for the time being.  Call or email Dennis today to determine your purchasing power for a new home loan or monthly savings from a refinance.  Direct dial 562-472-1118