Oil prices sink mortgage rates

Inman News has an article today on how oil prices are responsible for a drop in mortgage interest rates this week.

"Mortgage rates fell because a pair of economic reports led investors to believe that the economy is slowing due to high fuel prices, according to Bankrate.com. The report on retail sales in July showed weaker-than-expected growth. One strong venue of retail sales was at gas stations; as the Consumer Price Index showed, people spent more at gas stations in July because fuel prices went up 3.8 percent. While higher fuel prices might increase overall inflation, they also can stall the economy. Among investors the latter concern outweighed the former; the prospect of economic weakness sent rates lower."

Also interesting was the comment that "long-term mortgage rates are at about the same low level they were at this time last year. So it isn't surprising that the housing industry continues to thrive. Home sales are strong and housing starts are up for the first seven months of the year over the same period last year."