The Week in Review:
The news of the week was interest rate friendly. Economic reports for the week showed low inflation and slow hiring. These reports helped home loan rates decrease by about .125%.
What to Expect:
This week started out with the credit ratings firm Standard and Poor’s cutting their credit outlook on the US from stable to negative. The news caused the stock market to take losses at the beginning of the week which helped home loan rates improve.
Although the initial reaction helped interest rates, a credit downgrade would be not good news at all and would force rates much higher. This week the bet would be on locking in loans early in the week because it would seem reasonable to see rates drift higher toward the end of the week.
Breg-ometer:
Next 7 Days: Rates lower at the beginning of week; suggest locking
Next 30 Days: Neutral
Next 90 Days: Rates up
Courtesy of:
Bob Bregitzer
[where: 30080]