Monday, November 06, 2006

So What Are Interest Rates Going To Do? 11/06/06

How often do we hear that question? "So What Do You Think Interest Rates Are Going To Do?" Here is a customer focused report for Mortgage Market Direction

Week of: Monday, November 06, 2006

Present Market Conditions
Economic data continues to support the view that the U.S. economy is not slowing as much as some believe, and may even be strengthening into the 4th quarter of 2006. While the October employment numbers reported job growth at tepid 92,000, nearly all the other details in the report exhibited a healthy economy, with the biggest shock being the drop in the unemployment rate to 4.4%, marking the lowest since May 2001.

Expectations
Most economists surveyed feel that the U. S. economy is still contracting, but that the rate of slowing has been held in check by recent Fed action. Conflicting economic data will keep the Federal Reserve on "permahold" at a 5.25% target federal funds rate, equally mindful of the risks of a slowdown and higher inflation; although many feel that the biggest threats may be gone. "The economy is not going to get any worse" than the weak third quarter growth rate, said Haseeb Ahmed, economist at JP Morgan.

Guidance
Mortgage rates changed slightly this past week, but remain very close to 40 year lows. These tremendously low mortgage rates coupled with an abundance of available homes make this a terrific time to purchase a home or refinance a mortgage. As always, staying informed of movement in financial markets and having the assistance of a professional consultant will enable you to take full advantage of the mortgage market.

Posted by Jeffrey S. Stanton, ITI, CLC, CRLS, CHCLS, WOW at 2:53 PM

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