Inflation Concerns Pressure Rates Higher

It was a difficult week for mortgage rates. Concerns over inflation and the continued rise in oil prices helped create anincrease in rates for the week ending June 6. Fed Chairman Ben Bernanke, in a graduation speech delivered to recent Harvard grads, stated his concern for inflationary pressures caused in part by high oil prices. Most economists predict that the Fed may start to raise the benchmark Prime rate later this year to combat inflation. In a historic context, interest rates remain favorable for home purchases, and there are some amazing deals to be had.