What Are Interest Rates Going To Do? 4/20/09

Dear Realtor Friends,

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: Monday, April 20, 2009

Presently Market Conditions Are
“Mortgage rates on fixed-rate loans and some ARM products eased this week” stated Frank Nothaft, chief economist for Freddie Mac. He continued to say that “Interest rates for 15-year fixed-rate mortgages are now at a record low since Freddie Mac's survey began tracking it in August 1991, and rates for 5/1 Hybrid ARMs also reached the lowest since the start of the series in January 2005.” Mr. Nothaft further states that “The housing industry is starting to exhibit some positive signs, albeit scarce and too early to tell how permanent. In its April 15th regional economic report, the Federal Reserve reported that better-than-expected buyer traffic led to a scattered pickup in home sales in a number of its Districts over the 6-week period leading up to April 6th. Factors such as homebuyer tax credits, low mortgage rates, and more affordable prices were cited as leading to more potential buyers. This may have added to the rise in homebuilder confidence in April, which rose to the highest level in six months, according to the National Association of Home Builders. Moreover, confidence increased in each of the four regions, led by the Northeast and Midwest where new construction of one-family homes had already increased in March, according to the Department of Commerce.”

My Expectations Are:
With little economic data to go on the first part of the week, the focus will turn even more so to the stock market which is viewed as a leading indicator of sorts. If recent gains continue and strength begins to solidify it could portend economic recovery in about six months or so. The week wraps up with existing home sales and jobless claims on Thursday and durable goods orders and new home sales on Friday.

As Your Trusted Advisor For Life, My Guidance For You Is:
Given the recent positive turn in the housing and mortgage market, now is the best time to meet with you mortgage professional to discuss a mortgage solution that meets your clients financial goals.

On Your Financing Team.
Jeffrey Stanton ITI, CLC, CNE, WOW
Your Personal Mortgage Consultant For Life.
347-466-3047