What Are Interest Rates Going To Do? 4/30/07

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 30, 2007

Presently Market Conditions Are:
The Commerce Department reported Friday that the U.S. Gross Domestic Product slowed to 1.3 percent in the first quarter of the year. Growth was led by consumer spending, state and local government spending and business investments. Rising energy prices and a weak housing market slowed growth. In a separate communication, the Labor Department reported employment costs rose 0.8 percent in the same quarter with wages and salaries increasing 3.6 percent in the year ended March 2007.

My Expectations Are:
"From my perspective as a monetary policymaker, I would say that, in these circumstances, with heightened risks to both growth and inflation, the best course for policy is watchful waiting," said Janet Yellen, the president of the San Francisco Fed. Yellen went on to say that she was sticking with her original forecast made at the beginning of the year that growth would pick up in the second half of the year, although she had reduced her forecast somewhat. The FOMC is due to release its next rate setting statement May 9th.

As Your Trusted Advisor For Life My Guidance For You Is:
Boosted by warmer weather, new home sales increased by 2.6 percent in March and applications for new mortgages rose last week for the first time in six weeks as mortgage rates dropped. This is the critical spring selling season. With these factors coupled with an abundance of homes on the market, it truly is an ideal time to be in “home buying” mode. Capitalize on this exceptional season by seeking the assistance of a qualified professional.