The Week in Review:
The past few weeks we have experienced significant day-to-day interest rate fluctuations and have advised locking-in short term transactions. The trend continued the past week ending with home loan rates about .125% higher.
What to Expect:
The schoolyard brawl taking place in Washington to hammer out a debt ceiling resolution continues this week. While the situation could have a huge impact on home loan rates, the markets have not reacted to the childish antics of our politicians. Most believe an agreement will be reached and we’ll move forward with business as usual.
Late in the week, we’ll get the Initial Jobless Claims Report. This leading indicator will let us know how the labor market is doing. The Gross Domestic Product Report, which is the broadest measure of economic activity, will be released Friday. Significant weakness or strength could be a market mover.
Breg-ometer:
Next 7 Days: Lock-in transactions closing soon
Next 30 to 90 Days: While rates have an opportunity to come down, we don’t feel they can drop much lower than current
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30339]