Retail Sales ok, but what wil PPI and CPI indicate for Colorado Home loan rates?
You can get most of the Retail Sales information from www.coloradomortgagebanking.com/news Colorado Home Loan rates are currently moving up and down with very little volatility at the movement, indicating that Colorado Home Loan rate pricing should stay right where they started the day. The Retail Sales numbers came in slightly higher then what investors anticipated they would, but not high enough to make Colorado Home Loan rates increase. The real story will come in the days ahead. We have two inflationary reports coming out and both reports can move Colorado Home Loan rates up or down fairly quickly. The Consumer Price Index and the Producer Price Index both tell the story of what inflation has done to pricing as a whole. These indicators, which are reported monthly, will set the stage for what Colorado Home Loan rates will do for the remainder of the month. Experts are currently stressing the fact that energy prices are at a point where inflation has to be high. I too believe that this will impact the numbers, but investors have already anticipated high energy costs into their risk assessments. So what happens if these reports come in at or below expectations? Colorado Home Loan Rates will improve. Based on the state of the Economy and the fact that people are afraid to buy, inflation should be in line. Inflation can really only go up if demand is high, if demand is low pricing will decrease. Low demand normally will cause inflation to decrease. So we are back to our original thought and that is what story will energy have with the numbers? Hard to say exactly how investors will react to this, but we will know by Thursday. I will keep the FLOAT recommendation in place, but stay tuned to see what the reports will do. God Bless and thank you for staying tuned.
Tags: , Colorado home loan, inflation, Rates
