Consumer prices barely rose in June, but the underlying trend points to inflation. Rising inflation will likely lead to more Fed rate increases and higher rates. Producer prices rose more than expected in June, another factor pointing to inflation. This jump was the largest annual increase in 6 1/2 years. Although trade war concerns have escalated, there’s not a lot of fear that this will hurt the economy. In the meantime, mortgage rates have remained the same.
Homeowners have an estimated $5.8 trillion in accessible equity, the highest ever recorded. Despite this, fewer owners are taking cash out that in previous eras. Inventory remains tight, but could loosen up a bit in the near future. Inventory increased 12.2% in the 2nd quarter, the biggest gain since early 2015. Although refinance applications were down last week, purchase applications rose 7% for the week and were 8% higher than the same week a year ago.
Check out these great rates and give me a call today!
Conforming 30 year fixed 4.500%
Conforming 15 year fixed 4.250%
Jumbo 30 year 4.250%
Jumbo 30 year 5/1 ARM 4.000%
FHA 30 year 4.500%
VA 30 year 4.500%
Need a loan preapproval? Give us a call: Diversified Capital Funding
Eric Muller - Mortgage Loan Officer, 925-708-0957, Eric@divcap.net