What Are Interest Rates Going To Do? 3/12/07

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, March 12, 2007

Presently Market Conditions Are:
The Labor Department reported Friday that the U.S. economy created the fewest jobs since January 2005, even as the unemployment rate fell to 4.5%. In addition, personal income rose by 1% which is the largest increase since last January. Though the Job Growth numbers were poor, they came as no surprise as economists had expected this and traders were expecting much worse.

My Expectations Are:
Mortgage rates continued to improve last week to the lowest levels of the year. This is partially due to a dip in yields on Treasury and other fixed-income assets. According to Frank Nothaft, Chief Economist of Freddie Mac, “All things considered, we do not expect to see significant movements in the mortgage rates.” He also expects home price growth to average 2.8% for the year.

As Your Consultant For Life My Guidance For You Is:
According to the Census Bureau, new homes completed and available for sale reached 175,000 in January and there were 2.1 million empty homes on the market available for sale. These numbers coupled with very attractive mortgage rates makes this an optimal season for homebuyers. Please consult with a true professional to ensure your mortgage solution is tailored to your exact financial needs.