Monday, March 24, 2008

What Are Interest Rates Going To Do? 3/24/08

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

Week of: Monday, March 24, 2008

Presently Market Conditions Are:
In his report last week, Freddie Mac’s Chief Economist Frank Nothaft stated that the Federal Reserve decided to lower the target federal funds rate by 0.75 percentage points to 2.25 percent in the Federal Open Market Committee last week. This is the sixth time the Federal Reserve has taken such rate reductions in the past six months. As a result, the federal funds rate is now 3.0 percentage points below where it was just six months ago. In addition, the magnitude of the three rate cuts so far this year is twice as large as all of the cuts from last year, which communicates both the urgency of the situation and the Fed's determination to avoid a recession and stabilize financial markets.

My Expectations Are:
Long term mortgage rates fell sharply in the past week as the Federal Reserve cut rates to stimulate the economy and increased liquidity to shore up financial markets. 30-year fixed rates averaged 5.87% this week compared to 6.13% last week according to Freddie Mac’s mortgage market survey. Investors will be waiting for the results of the Jobless Claims and Consumer Sentiment reports due out later this week.

As Your Trusted Advisor For Life, My Guidance For You Is:
With housing prices holding at an affordable level, now is a great time to explore your mortgage options. Contact your mortgage professional so they can structure a mortgage solution to meet your financial goals.

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Jeffrey S Stanton
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