Monday, May 05, 2008

What Are Interest Rates Going To Do? 5/5/08

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, May 05, 2008

Presently Market Conditions Are:
As widely anticipated, the Fed cut the Fed Funds rate by one quarter point. Investors now believe that the Fed is less worried about slowing economic growth. The unemployment rate slipped to 5.0% showing signs of improving which supports expectations the Fed will pause cutting rates. This resulted in less volatility and good news for mortgage markets as rates have dipped slightly.

My Expectations Are:
Expectations for a future Fed rate cut have fallen to very low levels. According to Wall Street economists, the Fed is expected to remain in a holding pattern and assess the effects of last week's rate cut, the economic stimulus package and the decrease in the unemployment rate. Though the economic calendar is very light this week with mostly second-tier data releases, of interest is the ISM service sector survey (Monday), pending home sales index (Wednesday), and productivity (Wednesday).

As Your Trusted Advisor For Life, My Guidance For You Is:
With current mortgage rates still at historically low levels, now is the time to contact your mortgage professional so they can structure a mortgage solution to meet your financial goals.

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