So What Are Interest Rates Going To Do? 11/13/06

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
Data on the U.S. economy is still sending mixed signals. Consumer sentiment remains high, with income growth continuing to outpace inflation signaling strength while a slowing housing market in much of the country lends credence to the idea that the economy is continuing to contract.

Expectations
Many economists look to Thursdays publishing of Consumer Price Index numbers for October to report a second straight decline in consumer prices, mainly the result of declining energy prices. However if Core CPI, which excludes food and energy prices, were to unexpectedly rise at a troubling pace in October it could put pressure on the Fed to raise interest rates again. "We do not expect anything in the report that would agitate the circling hawks at the Federal Reserve, so it may be slightly positive for bond prices," wrote Brian Bethune, an economist for Global Insight in his monthly report.

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.