Monday, January 15, 2007

What Are Interest Rates Going To Do? 1/15/07

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.

Week of: Monday, January 15, 2007

This week when a customer asks the question try this:

Present Market Conditions Are:
Friday's reports of better than anticipated retail sales figures for December as well as increased prices for imported goods provided new evidence for the argument that the economy remains strong enough to fuel inflationary pressures and prevent the Federal Reserve from cutting interest rates.

My Expectations Are:
Strong economic growth through the last quarter of 2006 and into 2007 indicates that the Fed may be slow to change interest rates in the near term. "With December retail sales stronger than expected and import prices rising at the fastest pace since May, evidence is mounting that the economy appears ready to come out of its 2% plus [economic growth] range," said Bernard Baumohl, managing director of the Economic Outlook Group. "It also means the Fed will remain disinclined to lower rates."

My Guidance For You:
Mortgage rates declined slightly last week while applications were at a seasonally adjusted high. 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 mortgage consultant will enable you to take full advantage of the mortgage market.

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Jeffrey S Stanton
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