Monday, July 02, 2007

What Are Interest Rates Going To Do? 7/02/07

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, July 02, 2007

Presently Market Conditions Are:
At last week’s Federal Open Market Committee meeting the Fed decided to keep the overnight lending rate steady at 5.25 percent. Though an improvement in both inflation and growth was acknowledged, the committee said “a sustained moderation in inflation pressures has yet to be convincingly demonstrated.” In addition, the Commerce Department reported that core consumer prices, which exclude food and energy, rose just 0.1 percent in May. Also, after-tax real incomes fell 0.1 percent and real consumer spending increased 0.1 percent.

My Expectations Are:
Economists were not surprised by the Fed keeping interest rates level. The most sought after information was insight as to what policy direction they may take in the future. According to, “As long as core inflation remains in control, the Fed won't feel any need to raise interest rates, even as policymakers keep a wary eye on broader inflation including food and energy, which exploded at the fastest rate in more than a year on higher energy costs.”

As Your Trusted Advisor For Life My Guidance For You Is:
Mortgage rates declined slightly for the second week in a row. The combination of rates dropping, housing supply increasing and seller incentives becoming ever more creative, the is a optimal time for home buyers. Consulting with a true professional will ensure every real estate transaction meets your financial needs.

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