What Are Interest Rates Going To Do? 6/11/07

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, June 11, 2007

Presently Market Conditions Are:
Stocks rallied Friday at the end of a tough week on Wall Street in which worries about inflation and rising interest rates sent the major gauges tumbling for three straight sessions. Unexpected strength in the services sector comes on the heels of a barrage of reports released last week that pointed to solid growth in the job market, manufacturing and consumer spending. These developments raised bets that the Fed may have to boost interest rates later this year, dashing hopes on Wall Street that the central bank might cut rates later in the year.

My Expectations Are:
"Mortgage rates climbed this week owing to market concerns about a tight labor force and wage growth," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement last week. He noted that reports pointing to a tight job market and rising labor have fanned inflation fears on Wall Street. Robust economic growth outside of the housing market with healthy consumer and improving business spending has added to upward pressure on rates.

As Your Trusted Advisor For Life My Guidance For You Is:
Mortgage rates are only one third of the affordability equation that plays out in the housing market. There is also home prices themselves and household incomes, both of which have been positive lately for buyers based on declining list prices and an increase in consumer spending. As developers and sellers continue to drop their prices to move inventory, and with interest rates beginning to show slight upward movement, now is a great time to secure financing. Staying informed of movement in the financial markets and having the assistance of a professional consultant will enable you to take full advantage of the mortgage market.