Oil prices up, interest rates down!
Well, who would ever think that rising oil prices would have an effect on interest rates? Bankrate.com reports that "Long-term mortgage rates tend to move in the same direction as yields on 10-year Treasury notes, and those yields fell when oil flirted with $55 a barrel late last week."
And the rationale for this? The article goes on to explain "Higher energy prices could add fuel to inflation, too -- and rising prices would put upward pressure on interest rates. But right now, bond investors are more worried about the effects of rising oil prices on economic growth than on inflation."
Interest rates are down slightly this week from last week, with a 30 year fixed rate at 5.70% (down 0.05%). Our home buyers have been very happy with the interest rates they have been getting. Make sure you shop around for a loan, as there are many loan programs to choose from!
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