Good afternoon everyone and happy Friday. We got some awesome news earlier this week that our cash out products pricing has dropped as has the time it takes to close on one. This is an awesome opportunity for people to take some equity out of their homes before the refinance tax goes into place towards the end of the year. So if you have been on the fence about doing a cash out, now is the time!
The CPI report came in today showing that inflation continues to rise. The core rate showed a .4% increase from last month and a 1.7% increase from last August. As we have said, we think inflation will continue to rise as the market continues to open up (remember the lumber market situation from a couple weeks ago?). If this inflation trend continues, mortgage rates will follow. This is because as the dollar loses value, investors require a higher return.
The stock market is ticking up this morning. Mortgage backed securities are squeezed between the 25 and 50 day moving averages. They are going to break out one way or the other soon. As we know, we are more mad about rates going up than we are happy about them going down, we hold a locking bias.