Monday, January 08, 2007

What Are Interest Rates Going To Do? 1/08/07

You, like me are asked this 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: Monday, January 08, 2007

Presently Market Conditions Are:
Fridays Labor Department report showed an unexpected increase in Decembers new jobs figures while unemployment was unchanged from November. Conversely, retail sales numbers published reflected that although holiday spending was strong, many large retailers actually fell short of projections.

My Expectations Are:
Most economists expect the Feds motivation to cut rates has been quashed by the solid economic reports for the last quarter of 2006. A strong jobs market coupled with better than expected consumer spending figures have reduced the prospects for a reduction in the discount rate early in 2007. 'The combination of good payroll gains and a higher-than-expected average hourly earnings figure was not greeted warmly by the bond market," said Josh Shapiro, an economist at MFR. "This report reduces what we believe to be already low chances of an early Fed ease."

My Guidance For You:
Mortgage rates remained steady last week and are 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.

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