Will Low Inflation Numbers Keep Mortgage Refinance Rates Low?

Increasing inflation numbers can be very negative for mortgage refinance rates, causing them to spiral upward rather quickly and significantly.  Fortunately for now, current inflation and forward looking projections for inflation call for an even keel pricing future. 

 

So yes, low inflation numbers will help to keep mortgage refinance rates low, but there are other major variables involved that can bump up interest rates even while inflation numbers are kept in check.  More overall economic and housing uncertainty could have its effect on the mortgage spread risk premium and drive mortgage refinance rates up.  Also, if the stock market explodes upward, money will flow away from US treasuries and into stocks, causing the treasury yield to increase and signal refinance mortgage rates to increase.

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