Market Update: Mortgage Rates Rise; Consumer Price Index Coming Up This Week |

Abstract

Market Update: Mortgage Rates Rise; Consumer Price Index Coming Up This Week Blog posted On October 10, 2022 Mortgage rates trended higher last week after the release of strong jobs reports. In a typical market, economic data wouldn't influence rates to the volatility of this extent. Why? Strong jobs data suggests that the economy can continue enduring the rate increases by the Fed. One of the main reasons the Federal Reserve has been aggressively hiking the benchmark interest rate is to help combat the record high inflation increases. In August 2022, the consumer price index was at an annual rate of 8.3%. Month-over-month, the index inched up 0.1%. Core inflation, stripping out food and energy costs, climbed 6.3% annually and 0.6% monthly. Any hope for cooled interest rates lies in inflation levels. For a home amidst high inflation and rates, ask us about our inflation-busting loan products that can help reduce the impact of higher rates on your mortgage.