Monday, May 14, 2007

What Are Interest Rates Going To Do? 5/14/07

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 14, 2007

Presently Market Conditions Are:
The Federal Reserve decided Wednesday to hold short-term interest rates steady at 5.25 percent and gave no indication of intent to move interest rates anytime soon. However on Friday, the Commerce Department released its report citing U.S. retail sales slowed in April dropping an unanticipated 0.2 percent. This report leads to concern that a decline in consumer spending, which accounts for more than two-thirds of the economy, will jeopardize growth. In addition the Labor Department reported producer prices, excluding food and fuel costs, were unchanged for the second consecutive month. These reports have incited a ray of hope that at the next meeting of the FOMC we will see a drop in short-term rates.

My Expectations Are:
Ian Shepherson, chief U.S. economist at High Frequency Economics, predicts that the data released between now and the next FOMC meeting will be "substantially weaker on all fronts." He was quoted by Market Watch as saying, "If we're right, it would be reasonable to expect a serious shift in the Fed's stance at that meeting, followed by the first ease in August." The Fed will meet again June 28th.

As Your Trusted Advisor For Life My Guidance For You Is:
Last week's reports led to little change in mortgage rates. They are still at historical lows. In addition, homeowners and homebuyers this year have turned their interests to more traditional mortgage financing options. We're a nation getting back to basics. What is more fundamental than home ownership? Conditions are ideal. Capitalize on this exceptional season by seeking the assistance of 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