Falling Gas Prices

I thought I would give an update of what is happening in the markets. The mortgage rates have been declining over the last couple weeks from their highs. The reason for that is that oil prices have been dropping. I am sure that you are starting to notice a difference at the pump lately. We are 25% off of our high for a barrel of oil . You may say what does this have to do with mortgage rates? Well I will tell you. The Major opponent of bonds is inflation. When oil prices go up, prices in the grocery store go up as well as all of your every day needs. This makes your dollar not go as far. Bonds are long term and the higher the inflation the lower the rate of return is. Which means investors can get a better return somewhere else which makes bonds less attractive, and rates go up. So as oil has been dropping it is better for bonds because it makes them more attractive to investors. Please call me if you would like me to run any payments for you. 450-9789.