What Are Interest Rates Going To Do? 5/07/07

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, May 07, 2007

Presently Market Conditions Are:
The Labor Department reported on Friday that U.S. jobs growth slowed in April to 88,000 with 12 percent fewer jobs added than economists had forecast. In addition, unit Labor costs, which are a key inflationary signal, rose at an annual rate of 0.6 percent in the first quarter of the year. The unemployment rate inched up to 4.5 percent. In a separate report coming from the Commerce Department, information was given that orders for American made factory goods rose 3.1 percent in March and this was the largest increase in a year.

My Expectations Are:
The question now is, “What will the Fed do with rates when they meet on Wednesday?” Commenting on the Labor Department report, Josh Shapiro, chief U.S. Economist for MFR, Inc. said, “This report will probably be viewed by the Federal Reserve as more backward- than forward-looking. We continue to expect monetary policy to remain unchanged for the balance of the year and next Wednesday’s FOMC policy statement is unlikely to provide encouragement vis-à-vis a near-term policy move.”

As Your Trusted Advisor For Life My Guidance For You Is:
Mortgage rates have been holding steady for the past few weeks and remain at historical lows. In addition, there is an abundance of homes for sale on the market many with phenomenal purchase incentives. Conditions are ideal for purchasers. Capitalize on this exceptional season by seeking the assistance of a qualified professional.