What Are Interest Rates Going To Do? 2/26/07

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 26, 2007

Presently Market Conditions Are
The U.S. economy is in stable condition and many believe a slightly weakened condition. The U.S. housing market appears to be stabilizing and the Federal Reserve will most certainly keep interest rates unchanged during the next FOMC session. Strong financial markets, near full U.S employment and tame inflation are contributing to an attractive economic environment.

My Expectations Are:
Quite a bit of economic data will be released in the middle of the coming week. The Institute for Supply Management index, orders for durable goods, data on home sales and home prices, auto sales, and the core inflation rate. "Weak economic readings from durable goods orders and factory purchasing managers could give a bit of a lift to the bond market, particularly as the facts on fourth-quarter gross domestic product are downgraded," wrote Avery Shenfeld, an economist with CIBC World Markets. Both new and existing homes sales appear to be improving as we approach the traditionally strong spring housing market.

As Your Consultant For Life My Guidance For You Is:
Longer term mortgage interest rates have improved slightly from last week and appear to be in a longer term flattening trend. As home prices remain soft and builders continue to sell off excess inventory, the homebuyer continues to hold the upper hand. Always consult with a professional Consultant for assistance in designing a custom tailored mortgage solution to meet your exact financial needs.