What Are Interest Rates Going To Do? 1/02/07

You, like me are asked the question often. "What Do You Think Interest Rates Are Going To Do?" You know, now here is a customer focused report for Mortgage Market Direction.

This week when a customer asks the question try this:

Week of: Tuesday, January 02, 2007

Presently Market Conditions Are:
Early reports for the end of 2006 look to be mostly favorable. Unprecedented figures for the stock market as well as record earnings reports helped to offset a downturn in the national housing market. Financial markets will experience another short week, being closed for New Year's Day as well as the national day of mourning for former President Gerald Ford.

My Expectations Are:
Most economists are waiting for this week's reporting of several key economic indicators. Both the December employment figures and the Institute of Supply Management's report on manufacturing activity are expected to show economic growth is slowing, but not stopped completely. Ken Mayland of ClearView Economics agrees that the economy is entering "something of a slowdown period, specifically when it comes to production. "The place where the economic slowdown is really evident has been in the manufacturing sector," said Mayland.

My Guidance For You:
Mortgage rates crept up slightly last week but remain well within reach of the lowest of the year. 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.