Inflation pressures
If you’ve been a consistent reader of ‘rate update’ or this blog you know that inflation expectations are the primary factor for driving mortgage rates. When expectations of inflation increase it causes rates to rise and vice versa.
There are two articles published this morning which give contradictory forecasts for inflation. It just goes to show that no one knows for sure. Here are links to read for yourself:
-Barron’s: Inflationary Risks Increasing
-WSJ.com: Fed’s Kohn Sounds Upbeat Note, Says Current Rates Are Appropriate
Posted: May 20th, 2008 under Economics & Interest Rates, General Mortgage Info., Rate Update.
Tags: inflation