Week in review:
Last week we predicted home loan rates to be volatile with little net change for the week and that is exactly what happened. Rates improved during the week but ended the week right about where they started out. As we have experienced over the past few months, announcements by the US Treasury to sell record levels of debt kept home loan rates from improving.
What to expect:
This week there are a number of economic reports to digest. Reports on consumer confidence, unemployment claims and the manufacturing sector are set for release. Additionally, we will need to see how well the sale of approximately $200 Billion in government debt goes. If there are plenty of buyers and demand is high, home loan rates may come down this week. If the opposite is true, rates could make a quick move upwards.
Breg-ometer:
Next 7 days: Direction this week depends largely on Treasury auction results
Next 30 days: Home loan rates should hover in this same general area
Next 90 days: See below
Expanded 90 day view: With so many factors in play, it is impossible to determine where home loan rates will be 90+ days out. In general, the Fed has said it has the desire to keep rates low. However, several Fed members have gone on record recently to say the Fed will need to raise rates at some point in the near future. The best bet to take advantage of historically low rates is to act soon.
Courtesy of:
Bob Bregitzer
770-466-3562
[where: 30339]