Miami Home Loan Rates Could be Increasing!
Core PPI Released Today is UP
A Miami Home Loan rate could be on the increase.
The Labor Department reported today that the Producer Price Index (PPI) increased .1% in January from December. However, Core PPI (minus the cost of food and energy) rose .4% in January, double expectations. As you can see from this chart, this is the largest month-over-month increase of the Core PPI reading since July 2011. The Core PPI is considered a more accurate look on inflation because it removes the highly volatile categories of food and energy.
The year-over-year Core PPI number also increased, up 3% from January 2011. This was also an increase from the previous year-over-year reading of 2.7% from December 2010 to December 2011.
The Producer Price Index (PPI) is a measure of price changes in the manufacturing sector of the average price level for a fixed basket of capital and consumer goods paid by producers. It’s important to keep an eye on these numbers as inflation is the arch enemy of bonds, and therefore home loan rates.
If you are in the market for a Miami Home Loan, call me and I’ll give you all the details of qualifying and what is happening with the rates. When it is time to lock, we will get you the best rate we can for a Miami Home Loan!