What Are Interest Rates Going To Do? 2/12/07

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, February 12, 2007

Present Market Conditions Are:
Last week the average 30 year fixed rate dropped for the first time in nine weeks to 6.28%. This waning of rate came after the Labor Department reported moderate employment gains in January and the unemployment rate unexpectedly edged up slightly. However, there is still an improved outlook for the job market.

My Expectations Are:
Improving rates, an encouraging forecast in the job market and an increase in disposable personal income all lead David Lereah, National Association of Realtors chief economist, to have a positive outlook for 2007. “After reaching what appears to be the bottom in the fourth quarter of 2006, we expect existing-home sales to gradually rise all this year and well into 2008,” he said. Lereah went on to say, “When existing-home supplies become more balanced between buyers and sellers this spring, we’ll see some modest price gains.”

As Your Consultant For Life My Guidance For You Is:
The already favorable mortgage interest rates have gotten even better. These tremendously low 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.