Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights mortgage rates and inflation.
- The rate on a thirty year fixed rate mortgage remained relatively unchanged last week at 4.69%, but is down 26 bps from mid-April.
- The average annual inflation expectation in the U.S. over the next ten years declined by 9 bps to 2.39%.
- The decline in long term interest rates reflects conflicting signals from the latest employment report – more people employed, but a higher unemployment rate due to a bigger labor force.
- Incredibly, despite rising and accelerating consumer prices and producer prices, the global bond investors have largely discounted any future inflationary pressure. If there is a change in this sentiment, interest rates could quickly spike upward.