If you're looking to get a mortgage on home in Houston in the near future, following is a great summary of the fluctuations in the industry as originally distributed by James Koss with Secure Mortgage Company in Houston.
Mortgage interest rates finally pulled back and pushed lower this afternoon after nine straight days of moving higher.
The market received some relief on a weaker than anticipated May employment report released today.
The U.S. unemployment rate jumped to 5.5% last month and the .5% rise was the biggest month to month increase since February of 1986.
The US economy lost jobs for a fifth month in a row this year as payrolls shed 49,000 jobs last month for a total loss of 324,000 jobs so far this year.
The June employment report released this time next month will be the most significant this year as it will be critical in determining Federal Reserve interest rate policy for the remainder of the year.
As of right now, there is a growing bet that the Fed may need to act next quarter to raise interest rates to contain inflationary pressures that are developing due to pricing increases in several spaces in our economy....the most signficant being price escalation in energy prices at all levels.
The price of oil broke through another record today and touched $135 a barrel and most analysts see trading levels as high as $150 by mid July.
What is surprising is that we are seeing no sign of the US consumer slowing down on spending and we haven't seen a negative net effect developing in US industries outside of the airline and travel spaces.
Airline companies will figure out how to continue to make money in light of higher fuel costs by increasing fares and adding more efficient routes to their service platforms.
The higher inflation trade will probably continue to play out next quarter and interest rates will probably edge higher in tandem but my bet is that we are not going to see a significant slowdown in our overall economy as some analysts feared early in the year.
Interest rates may continue to pull back a bit a bit Monday and Tuesday and these days will be perfect for locking interest rates for transactions closing 30 to 45 days out.
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