The stock market endured back to back days of  200 pt declines as the rapid rise in oil prices has taken it's toll on the market. Mortgage rates are aggressively moving up with the news as investors grow more concerned with inflation. The rapid increase in oil prices, up nearly 100% over the past twelve months is likely to have a dramatic impact on the health of the economy. The tax rebate checks that were supposed to stimulate economic growth will be all but wiped out as consumers figure out ways to try and save money as opposed to spending this and spurring growth. Mortgage rates have risen over .25pts this week with a dramatic increase in bond yields as investors fear that inflation growth will escalate in the coming months. The effect of oil prices will have dramatic impact on the travel and transportation industries and could pose a dramatic challenge to economic growth if the current pace of price increases is not slowed.

5-23-2008©LowRateMortgage.com

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