The Week in Review:
While we saw home loan rates fluctuate in both directions, rates ended the week unchanged. The fluctuations were primarily because of a mixed bag of economic data. Consumer Confidence was disappointingly low, while Unemployment Claims and GDP were better than expected.
What to Expect:
Home loan rates are currently trying to beat their all-time lows but each time they touch this level they get turned around.
Can they move lower?
It is possible but a catalyst is most likely needed. Friday’s Jobs Report will be the big economic release of the week. A weak jobs report could cause rates to drop but a better than expected report could cause a rise.
There was much talk last week about whether the Fed needs to step in again and help the economy though Quantitative Easing (where the Fed intentionally increases the money supply by purchasing government securities from the market). Such action could cause home loan rates to initially decrease. An announcement is not expected until November.
Breg-ometer:
Next 7 Days: Since the end of August we have seen daily fluctuations without an overall trend up or down and we expect this pattern to continue over the short-term
Next 30 Days: Same
Next 90 Days: Neutral; Will the Fed make a move?
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]