The Week in Review:
Home loan rates continued to bounce around at all-time low level throughout the week. Rates ended the week unchanged.
What to Expect:
The downward trend, which began in April, is still intact but with rates at all-time lows it will be progressively harder to keep going. Last week, there was very little movement in rates as the market attempts to determine the next direction. We would not be surprised to see rates just slightly higher by Friday.
This week there are numerous reports on inflation, manufacturing and unemployment. None of the scheduled reports are expected to cause rates to go up. However, since each is expected to be dismal, we would not expect them to further cause rates to decrease.
On Tuesday, the White House hosts a “Conference on the Future of Housing Finance”. At this conference, the future of Fannie Mae and Freddie Mac will be discussed. News reports from the conference could send waves through the markets. Also, there are rumors of a major bailout for homeowners upside down on their mortgage. If anything develops, we’ll bring you the news next week.
Breg-ometer:
Next 7 Days: Same range to slightly higher
Next 30 to 90 days: Neutral; Waiting for indication of direction.
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]