The Week in Review:
Home mortgage rates ended the week about .125 to .25% better due to a poor unemployment report and additional speculation that the Fed will provide support to the economy. Rates just dropped below the recent low point on Thursday only to trickle back up a bit Friday (a repeating pattern we’ve many times over the past couple of months).
What to Expect:
It’s only a four day week for the markets but we’ll have plenty of news to digest. Scheduled economic reports on tap are the Consumer Price Index (a measure of inflation) and Friday’s Retail Sales Report (a measure of consumer spending). Generally speaking, bad economic news can lead to lower rates and vice versa.
The ramifications of these reports are currently multiplied because the Fed is deciding to possibly inject more cash into the money supply. If the economic reports ahead are more negative than positive, it should increase the likelihood of more quantitative easing. We most likely won’t know until the November 2nd meeting, but the markets trade based on expectations.
Breg-ometer:
Next 7 Days: Rates should stay near the lows but will fluctuate regularly. Should there be an announcement or enough speculation about a firm plan by the Fed, the rate environment could move. We expect to be in the same range until a decision is made.
Next 30 Days: Same
Next 90 Days: Neutral; Fed decision will make all the difference
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30339]