Mortgage rates have drifted higher over the past two weeks. Many loan products are now quoted 10-basis points or more above quotes given in mid-April. Rising rates have crimped purchase-loan activity. Purchase applications were down 2% last week, according to the Mortgage Bankers Association.

Mortgage bond prices and U.S. Treasury prices have drifted lower on a dearth of bad news. In turn, yields have drifted higher. Commodity and oil price are on the rise (as you’ve likely noticed at the pump).  Rising prices is generally viewed as a good sign because demand is picking up and rampant price deflation is unlikely. There’s also little global discord. For the moment, most of us are getting along; markets are settled.

The current ethos is priced into the market. The news is unlikely to get much better, but it could get a little worse.

In fact, we’ve seen bond prices inch up and bond yields inch lower this week. Mortgage quotes have also inched lower. So, what’s going on? Financial markets are slightly unsettled over recent events in the technology sector. The world’s largest company, Apple Inc., missed on quarterly revenue and earnings estimates this week. The news likely had a few institutional investors selling Apple shares and buying low-risk bonds.

Overall, though, there isn’t much bad news, but what bad news there is should hold interest rates at their current levels. The party is still on.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.