How Gas Prices Are Impacting Mortgage Rates

Gasoline prices reached an all-time, inflation-adjusted high yesterday, averaging $3.23 per gallon nationwide. 

According to GasBuddy.com, this represents a 25% increase in the last 12 months.

Higher gas prices are leaving Americans with fewer discretionary dollars to spend and that is playing a role in the U.S. economy’s slowdown.  It’s one reason why mortgage rates have stayed low despite steady upside pressure from inflation.

High gas prices are also a reason why Thursday’s Retail Sales data will be closely watched; markets will gain insight into whether Americans are cutting back on personal spending because of rising energy costs.

Retail Sales are expected to have risen by a slight 0.1%.  If the actual number is lower, mortgage rates should fall on recession fears.  If it’s higher, rates should rise.

(Image courtesy: GasBuddy.com)

The Last Lecture on SonyRadio.com

Click on the link below to watch a video about a message that Dr Oz and Oprah Winfrey have to give:

http://www.sonnyradio.com/lastlecture.html

“46 year old Carnegie-Mellon Professor Randy Pausch is a dreamer.

His positive outlook on life is remarkable, given his circumstances. After watching his story, in this The Last Lecture, your life may never be the same again. Please watch the entire video. After you do, you’ll understand why.

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