Existing home sales rose in September, with first-time buyers claiming a 34 percent share of home purchases, a high not seen in over four years. After two straight monthly declines, Existing Home Sales in September jumped 3.2 percent from August. Limited inventory, however, still plagues many regions of the country
Inflation, Economic Growth Two Key Areas to Monitor Wholesale inflation came in hotter than expected in September due to higher energy and food costs. Consumer inflation also edged higher in September, though still on the tame side. Inflation trends are important to watch because inflation reduces the value of fixed investments, like Mortgage Bonds. When inflation rises, it can impact home loan rates, since they are tied to Mortgage Bonds.
The Bottom Line The good news for homebuyers is that tame inflation and tepid economic growth have helped keep home loan rates near historic lows, which helps offset rising home prices. If you have any questions about home loan rates or home loan products, please get in touch with me today.