Mortgage Rates August 14, 2013
Bonds are starting off a bit higher today, but there’s very little other good news. Both home purchases and refinances are down, by 5% and 4%, respectively. This isn’t entirely unexpected- we knew to watch out for a dramatic decrease at the end of summer. Rising mortgage rates and prices caused many people who might have purchased or refinanced in August to move their transaction into June and July. Nevertheless, it doesn’t bode well for the current market.
The Producer Price Index shows that inflation is unchanged and the Core PPI (prices on goods and services, excluding food and energy) was only up 0.1%. Both numbers are lower than expected. These numbers are important because the rate of inflation affects our rates and used to move prices in the market. With numbers like these though, we don’t expect to see any impact.
August 14, 2013 our updated mortgage rates in Florida are:
- 30 Year Fixed Rate Mortgage – 4.125% (4.338% APR)
- 15 Year Fixed Rate Mortgage – 3.125% (3.536% APR)
The only interesting side point we can make about today’s reports is that inflation may be too low for the Fed, which could hamper their ability to implement tapering in Sept. So far, everyone is saying there isn’t enough data for the Fed to decide. Unless they get their hands on something concrete that helps them decide, tapering may not be a viable option. Could it be all of this talk of tapering will come to nothing in the end? Four different reports come out tomorrow, including he Consumer Price Index, so we’ll start trying to make our best educated guesses then.
Check back tomorrow to get the newest rate updates!
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