The week in review:
Last week we heard several good pieces of news on the economic recovery. First, the results of the “stress tests” showed that 10 out of the largest banks will need additional capital, but as a whole the banking system was in good health. Then on Friday the Jobs Report shows fewer lost jobs than expected. Good news is generally bad for home loan rates and last week rates increased about .125%.
What to expect:
With a couple weeks in a row of worsening rates, I would expect rates to improve slightly this week. The stock market is up 34% from March and is most likely due for a breather. If stocks change their recent direction rates may improve.
With that said, the retail sales report on Wednesday could show improvement in the sector and if it does it will add more fuel for those that believe the economy is back on track.
Breg-ometer:
Next 7 days: Slightly lower rates
Next 30 days: Expect to be in the same range
Next 90 days: The likelihood of higher rates is growing as evidence of economic recovery continues
Courtesy of:
Bob Bregitzer
[where: 30080]