Frank Nothaft Quotes on Mind (3 Quotes)

With the conflict in Iraq seemingly under control, the financial markets have shifted focus back onto the economy. Freddie Mac's most recent economic forecast recognizes that the first half of the year may be slower than originally thought, but that the second half will begin to pick up.

The market interpreted recently released retail sales figures as a sign that the economy may now be recovering faster than originally thought, bringing fear of inflation back into the picture, ... But the good news is that April's Consumer Price Index (CPI), which came out Wednesday, indicates inflation remains under control. This should help keep mortgage rates stable for the foreseeable future.

That raised the expectation that inflation may be more of a threat than was previously thought, and that kind of thinking promotes upward pressure on mortgage rates like we saw across the board this week.