Markets don’t always react to what is actually happening, but rather to what investors perceive is happening, or what they believe might happen next.

That’s the challenge. Oil reserves are being released, over 400 million barrels, to help stabilize supply and calm markets. However, replenishing those reserves takes significant time, making the release more of a temporary band-aid than a long-term solution.

Why is a mortgage professional talking about oil and global tensions? Because oil touches nearly every part of the economy, from heating homes to powering manufacturing and moving goods around the world.

When energy prices rise or supply is threatened, it pushes inflation higher, affects financial markets, and ultimately influences interest rates and mortgage pricing.

PCE report on inflation due out tomorrow but may have little effect even if inflation is lower for January.

This too shall pass just not sure when.

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