This is my daily advice on floating or locking your Delaware mortgage rate for Tuesday, August 19, 2008.

The release of the Producer Price Index (PPI) today came out really high.  It rose 1.2% for July 2008 which is more than double expectations.  The Core PPI for the year is at 3.5%, which is the highest since 1991.  This is typically really bad news for Mortgage Rates and mortgage-backed securities. This should have sent rates higher but the news hasn’t moved the bond market.

This means traders realize that the higher inflation spike was due to the spike in oil prices. Now that oil has come down they are calculating inflation will be tamer in the months to follow.  Here is a link to an article explaining the jump in wholesale pricing that the PPI is calculated on http://biz.yahoo.com/ap/080819/economy.html

I am recommending that you FLOAT your Delaware Mortgage Rate because if this news didn’t drive rates higher then we have a good chance of improving the rest of the week.  Again keep in touch with your mortgage professional so that if the market decided to change you can lock in your mortgage rate.

If you need help with a Newark Delaware mortgage rate for the purchase of refinancing of a home, please feel free to call me at 302-703-0727.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713