Monday, May 08, 2006

Gas Prices and Morgage Rates

Unless you've been hiding out in your bomb shelter, you've probably noticed the sharp increase in gas prices. How does this affect mortgage rates, you say? Well, with the increase in gas prices, it costs more to manufacture and transport goods and services. Eventually, that increase in cost will be passed on to the consumer (you and me). When that happens, we have inflation. Inflation causes bond prices to erode. When bond prices erode, mortgage rates increase.

So, if you've been on the fence about refinancing or buying a new home, it might be time to lock in a rate!


Search the MLS for Ventura County Real Estate at:
www.HopeGoss.com

1 Comments:

At 5/14/2006 9:08 PM, Blogger Kyla said...

...I wonder who took that marvelous photo.... Oh yeah I did.
-Kyla

 

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