The Week in Review:
Home loan rates improved during the week by about .125%.
What to Expect:
Former Fed Chairman Alan Greenspan was quick to warn consumers not to be fooled by today’s low rates in a recent Wall Street Journal article. He said, “Long-term rate increases can emerge with unexpected suddenness. Between early October 1979 and late February 1980, for example, the yield on the 10-year note rose almost four percentage points.”
This week is a slow week for scheduled economic reports. However, since we have the convergence of so many factors causing this low rate environment, a rate change is possible at any time. The most important economic news will come on Wednesday when the Fed meets and releases their rate decision and policy statement. We don’t expect any surprising news from the meeting.
Rates are still on a downward trend but have stalled out near historic lows. Can rates break below this point or will they reverse direction? The markets are waiting for the next catalyst to determine their future direction.
Breg-ometer:
Next 7 Days: Daily movement; likely staying in same range
Next 30 to 90 Days: Further downward movement possible; however, we feel rates are at or near the bottom.
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]