Monday, April 02, 2007

What Are Interest Rates Going To Do? 4/02/07

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, April 02, 2007

Presently Market Conditions Are:
The Fed's dilemma seems to be getting tougher. Core consumer prices increased at the fastest pace in six months during February, even as consumer spending slowed to the weakest in six months, according to government data recently released. The Fed's preferred measure of core inflation -- the core personal consumption price index -- rose 0.3% in February, the biggest gain since August, the Commerce Department reported.

My Expectations Are:
The Fed is thus faced with both accelerating inflation and a slowing economy, a condition that some have called "stagflation." Fed Chairman Ben Bernanke testified last week that the Fed believes the slowing economy will reduce inflationary pressures over time without falling into recession. According to a Bloomberg report, “Traders expect about a 60 percent likelihood the Fed will cut its benchmark rate by a quarter-point to 5 percent in August, according to fed funds futures.” The central bank has left its overnight lending rate at 5.25 percent since August.

As Your Trusted Advisor For Life My Guidance For You Is:
Despite the conflicting message of recent week’s economic indicators, mortgage rates have remained stable and attractive. In this peak spring real estate season those shopping for a new home have the best of all worlds: great choices, low rates and a myriad of mortgage options. To ensure you capitalize on this excellent scenario, always seek assistance from a qualified, professional.

No comments:

Legal Stuff

CNE is a registered tradmark of Negotiation Expertise,LLC Your Professional Development and the information contained in/om , www, is the sole property of Jeffrey Stanton. the information contained is opinion only and should not me taken as legal or profesional advice. This website may not be duplicated whole or in part with out written permission.
This Site is not affilated with any othe web site and my contain links to outside web sites and is not responsible for other web sites content.

Certain statements contained on this blog may be deemed to be forward-looking statements within the meaning of the federal securities laws. The words “anticipate,” “believe,” “estimate,” “expect,” “project,” “plan,” “forecast,” “intend,” “goal,” “target,” and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, the effect of economic and market conditions including industry volumes and margins; the level and volatility of interst rates; the Company’s hedging strategies, hedge effectiveness and asset and liability management; the accuracy of subjective estimates used in determining the fair value of financial assets ; the credit risks with respect to our loans and other financial assets; the actions undertaken by both current and potential new competitors; the availability of funds from lenders and from loan sales and securitizations to fund mortgage loan originations and portfolio investmetns; the execution of growth plans and ability to gain market share in a significant market transition; the impact of disruptions triggered by natural disasters; the impact of current, pending or future legislation, regulations or litigation. The statements here are not offeres to extend credit as defined by Regulation Z. Rates, Programs, & Availability of Credit is subject to change

Jeffrey S Stanton
DRE ID # 01865119