Wage gains, a rise in consumer prices in April and steep increases in fuel with little appreciable drop in demand have risen the odds of a quarter point Fed rate hike to 44% up from 0% a month ago. Hence, much higher mortgage interest rates last week. May retail sales will be released Wednesday and May’s producer price index will be released on Thursday. Also, Friday, June 15 is quadruple witching . Consumer pricing, consumer sentiment, and two reports on industrial production will further support or cool economist idea that economic growth is accelerating too quickly. It is going to be a volatile week for mortgage interest rates. Stay in close contact with your mortgage professional. Let’s hope for inflation to cease and the level of economic growth to slow to a more moderate pace for the overall long term benefit of real estate and home mortgages. Thank you for the opportunity to serve you and your clients. David.
