On Wednesday, the government announced the CPI figure for March – down 0.1% with the core rate up 0.2%. This did not even cause a ripple in the markets.
You may recall that I mentioned a Treasury auction this week. The auctions did not draw what we would call a robust participation. In addition, the weak show of foreign investors was evident and worrisome. If we don’t have strong buyers from abroad AND the government wants to divest itself of its treasury holdings (yes, the Fed owns treasuries, creating demand which kept rates low. You probably heard of this called Quantitative Easing or (QE). We will probably see rates pop up like a beach ball let go after being held under water.
Lots of economic news this coming week: March retail sales, March housing starts, March building permits, March industrial production, March cap utilization rate. Lots of data points, but most likely the markets will have their eyes on the news headlines… Syria, China, North Korea.
All this is to say – lock in your rate for a refi or a purchase; do not gamble with the largest debt in your or your family’s financial life.
Rates remain the same as last week.
No rate sheet, as I will be at Mobile Home Park Bootcamp next Friday, so watch my Facebook live moments throughout the weekend.