Monday, September 17, 2007

What Are Interest Rates Going To Do? 9/17/07

You like me are asked this question often. "What Do You Think Interest Rates Are Going To Do?" Now here is a customer focused report for Mortgage Market Direction:

Week of: Monday, September 17, 2007

Presently Market Conditions Are:
The Commerce Department reported on Friday that U.S. retail sales increased by 0.3 percent in August but all of the gains were for auto purchases. When taking auto sales out of the equation, sales fell 0.4 percent. Some economists take the auto sales numbers as good news because typically purchasing big ticket items takes confidence on the part of the consumer. As the September 18th meeting of the Federal Open Market Committee quickly approaches, economists are closely analyzing the consumer sector for signs of distress as home prices have already begun to level off.

My Expectations Are:
The market is pricing in a 100 percent chance that the FOMC will cut the overnight lending rate this week. At this point, it is merely a question of whether the cut will be .25 or .50 percent. John Norris, director of Wealth Management at Oakworth Capital Bank was quoted by as saying,"Obviously everyone wants a 50 basis point cut. If it's only a quarter of a point the market will be upset. But if the Fed cuts by 25 basis points and the language in the statement is strong enough to indicate that this is the first of many cuts to come, cooler heads will prevail.”

As Your Trusted Advisor For Life, My Guidance For You Is:
As the markets continue to hold their breath to see what the Fed will do, it is critically important for a consumer to be savvy. Follow three basic steps: 1) Identify a quality source of information, 2) Identify a knowledgeable professional and listen to their advice so that proper timing and execution are achieved, and 3) Tap into the resources of a skilled mortgage professional to insure you are making sound financial decisions.

Jeffrey Stanton

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