Mixed signs on U.S. economy spell mixed forecasts

Interpreting economic news depends how you spin it

Good news: Gas prices are remaining low - this is good for consumers, at least. Also good news, the U.S. budget tightened its deficit to the smallest gap in eight years in part due to higher tax revenues.

Bad news: The lack of gains on energy prices are helping keep consumer prices low, along with worldwide economic struggles. These are some factors preventing the U.S. economy from experiencing more robust, steady growth.

With a still-strong U.S. dollar in the mix as well, inflation remains low. An inflation rate around 2 percent has been targeted by Federal Reserve officials before raising central interest rates, which have been stuck at 0 since the beginning of the Great Recession in 2008.

The absence of more dramatic economic growth has prompted some policymakers to suggest using negative interest rates as a tool to drive the economy further. This is a huge departure from the more widely expected increase in rates by the end of 2015.

To be certain, the idea of sending central interest rates below 0 is not popular with everyone, and it is more broadly expected that rates will instead begin rising in the next six months. Some analysts expect the first rate hike to come by this December.

What does all this mean for mortgage interest rates? Currently, mortgage rates are very attractive for most borrowers amid uncertain economic signs. More likely than not, they will start moving upward in the months to come. Please contact a licensed Loan Advisor at Vertex for more information on taking advantage of today's rates by calling toll-free 877-939-0339.