The Week in Review:
Last week was one of the most volatile we have seen in a while. By Wednesday, rates popped up about .25%. Then, regained some ground to end the week higher about .125%. The significant daily movement was caused by several factors – the biggest being a change in attitude about inflationary pressures increasing.
What to Expect:
It is a monumental week in terms of events that can change the course of interest rates. In order of occurrence this week:
1) Mid-term elections Tuesday: Markets trade based on expectations of the future. Elections can certainly change an investor’s outlook.
2) FOMC Meeting and Monetary Policy Statement Wednesday: We’ve been talking about it for a month. The Fed is set to announce its plans for additional economic stimulus. The expected plans have come under much scrutiny the past couple weeks and it will be very interesting to see how the market absorbs the information.
3) Jobs Report Friday: The number one factor to bring our economy out of the slump is job growth. So, the jobs report carries significant weight and result can make an impact.
Any of these events/reports alone would make for an interesting week. Having them take place in a four day period could make for a roller coaster of a week.
Breg-ometer:
Next 7 Days: We won’t even try to predict this week. We know there will be movement. We know rates will most like move both directions. We don’t know which push or pull wins out in the end.
Next 30 to 90 Days: Ditto. We may have a feel for the future direction of rates after this week.
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30339]