Favorable News For Mortgage Rates
May 10th - April CPI Report Arrives!
Where does inflation stand and what does this mean for rates?
Today’s CPI report shows some signs of inflation easing and summer should be favorable for rates if this continues. It is expected that the cost of shelter should crest and increases in used car prices to cease. Gasoline prices showed some pressure, but they have been coming down and should continue this trend. The bond market responded favorably as this is seen as progress in inflation. JPN and GS were on target with their predictions.
It all makes sense…
Used cars + 4.4% in one month = over 50% annually - can’t continue
3.25% weighting in core CPI pushed reading up 0.14%
Without this, core CPI would have been 0.27% month-over-month
Year-over-year core CPI would have been 5.4% rather than 5.5%
MORTGAGE RATES HAVE BEEN DECLINING TODAY UPON RECEIPT OF THIS NEWS.
LLPA News - Risk-Based Fees Impacting Borrowers
There was a lot of attention last week on the risk-based pricing adjustments affecting those with good credit to supplement lower credit score borrowers.
FHFA announced today that they are rescinding the next wave of change that was scheduled for August 2023 delivery for higher Debt-To-Income ratios. This is positive news as these changes can effectively impact the ability to borrow affordably and the overall housing market as a result.
