Ryan M
New Member
The retail sales statistics are one of the tools that banks use to get a pulse of the economy. If the American people are buying more things, it can be assumed that the economy is improving.
The banks see the boost in retail sales as a boost in demand (in this case, a demand for new things in general, including new houses). And, mortgage lenders -- just like any other business -- live and die by supply and demand. The higher the demand for their product, the more they can charge for it.
Does this mean we are likely to see a rise in mortgage rates as we approach holiday season and into early next year?
The banks see the boost in retail sales as a boost in demand (in this case, a demand for new things in general, including new houses). And, mortgage lenders -- just like any other business -- live and die by supply and demand. The higher the demand for their product, the more they can charge for it.
Does this mean we are likely to see a rise in mortgage rates as we approach holiday season and into early next year?