Kauai Mortgage Info. Rate Update – December, 2016

     

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    It was a rollercoaster for rates these last few weeks.

    Why? There are people concerned about the election in Italy. That and weaker-than-expected U.S. data were positive, but rising oil prices were negative. In the end, these influences were roughly offsetting, and mortgage rates finished the week with little change.

    Investors received different signals on inflation over the past week. On Wednesday, OPEC representatives announced that they were closer to a deal to cut oil production, sending oil prices sharply higher. This was negative for mortgage rates, as it raised expectations for future inflation. Friday’s key report on U.S. employment caused the opposite reaction, as it suggested reduced inflationary pressures. Wage growth in November was far lower than expected with a small decline from October. Wages were 2.5% higher than a year ago, down from the multi-year high of 2.8% seen last month.

    Employment in dropped in November from 4.9% to 4.6%, the lowest level since August 2007.

    More on Italy: A referendum in Italy on Sunday designed to speed up lawmaking appears to be a very close vote. If the referendum fails, it likely would lead to a period of political uncertainty in Italy. This would put the banking sector at risk. Investors reacted to this possibility early in the week by shifting to safer assets, which was good for mortgage rates. 

    Thanks to Lisa Ledesma at Prospect Mortgage for this report! If you are looking to get a loan here on Kauai please call me 808-652-3838 or email ann@kauaireg.com and I’ll help you on the path to getting qualified!

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