Rate Update November 15, 2010
Mortgage rates are higher this morning.
Mortgage rates have now increased by .375% since the Fed announced QE2. Clearly the markets have become increasingly concerned about the long-term inflationary implications of the Fed printing $600 billion. Many folks thought the Fed’s move would push rates lower but let’s not forget the Fed explicitly stated they wanted to push inflation higher to prevent Japanese style deflation. Inflation is the primary driver of mortgage rates.
The economic calendar is fairly full this week. Today’s most significant data points showed that retail sales increased by more than expected last month and that businesses added to inventories by more than expected. Both are encouraging signs for the economy and are likely helping to pressure rates higher this morning.
Current outlook: locking
Posted: November 15th, 2010 under Rate Update.
Tags: mortgage rates nov 15 2010, nov 15 2010 outlook for rates, rate update nov 15 2010