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4.20.2007

How 2007 Gas Prices Are Pacing With 2006 Gas Prices


Gas prices are entering a very similar pattern to 2006 across the United States and -- while it's bad news for motorists -- it could be bad news for mortgage rate shoppers, too.

Last summer, gas prices averaged more than $3.00 per gallon for three main reasons:

  1. Fear of supply reduction from the Middle East
  2. Fear of a repeat of the 2005 Hurricane Season
  3. Seasonal demand factors

Mortgage rates skyrocketed last summer because higher oil prices permeated the entire economy -- consumers and businesses alike -- and the cost of living increased for Americans.

Looking at the chart above, we may be in for a similar Summer Swoon.

Gas prices are mirroring last year's prices in late-April and not much has changed in the Middle East in the past 12 months.