Today’s Mortgage Rates Hover at 5%. Inflation Concerns Rising.

September 15, 2009

Daily Mortgage Updates

A&N Mortgage Logo15 September 2009 ? Mortgage Bonds opened down 28 bps. They are currently down 6bps as a result of some economic reports today. The bonds have been affected by much higher than expected wholesale prices, which can be a sign of inflation. The Producer Price Index (PPI…a measurement of inflation) rose 1.7% at the wholesale level, which is double the 0.8% expectations. PPI or wholesale inflation does not always get passed on to the consumer, which is the real inflation concern. We will get a much better read on this tomorrow when the Consumer Price Index (CPI) is released. One thing is for sure, once inflation arrives it always increases rates!

Consumers were spending last month and the retail sales rose by 2.7%, the largest increase in 3 years. However, most of the spending was generated from the Cash for Clunkers program, which has now ended. Excluding autos retail sales rose by 1.1%, which is better than the expected .4%.

The 30-year fixed is at 5% (5.055% APR), the 15-year fixed rate is at 4.5% (4.594% APR).

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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