22nd
June
2010
The Week in Review:
Home loan rates improved during the week by about .125%.
What to Expect:
Former Fed Chairman Alan Greenspan was quick to warn consumers not to be fooled by today’s low rates in a recent Wall Street Journal article. He said,”Long-term rate increases can emerge with unexpected suddenness. Between early October 1979 and late February 1980, for example, the yield on the 10-year note rose almost four percentage points.”
This week is a slow week for scheduled economic reports. However, since we have the convergence of so many factors causing this low rate environment, a rate change is possible at any time. The most important economic news will come on Wednesday when the Fed meets and releases their rate decision and policy statement. We don’t expect any surprising news from the meeting.
Rates are still on a downward trend but have stalled out near historic lows. Can rates break below this point or will they reverse direction? The markets are waiting for the next catalyst to determine their future direction.
Breg-ometer:
Next 7 Days: Daily movement; likely staying in same range
Next 30 to 90 Days: Further downward movement possible; however, we feel rates are at or near the bottom.
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]
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posted in Mortgages, Smyrna Vinings Real Estate |
17th
June
2010
The Week in Review:
Home loan rates continue to benefit from the situation in Europe. While rates increased about .125% on the week, they continue to be at historically low levels.
What to Expect:
Once again, news from overseas will continue to create market movement. Here at home, we have a few economic reports that will be important to watch. We obtain both the Consumer Price Index and the Producer Price Index Reports. Both reports measure inflationary trends. We expect inflation to remain low. Low inflation keeps home loan rates low.
Rates have moved lower the since the beginning of April. Over the past two weeks, rates have remained in the same range looking for the next news item to cause them to move one direction or the other. If we see stabilization in Europe, expect rates to increase.
Breg-ometer:
Next 7 Days: Same range
Next 30 to 90 Days: Depends on news from Europe. Improving conditions = rates up; Worsening conditions = possible drop further
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30339]
Possibly Related Posts:
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posted in Mortgages, Smyrna Vinings Real Estate |
9th
June
2010
The Week in Review:
Home loan rates decreased by about .125% on the week. It looked as if rates were going to end the week higher but an unexpectedly poor Jobs Report created enough concern in the market to change the direction of the mortgage-back securities market.
What to Expect:
It’s a tough call when projecting the future of interest rates. We are currently at the lowest levels I have seen in the twelve years I’ve been in mortgage banking. There are so many different factors at play, including economic turmoil from across the globe.
Our economy appears to be slowly getting back on track and it can be argued that based on our situation, interest rates should be higher than current levels.
If you are a rate watcher trying to seize the perfect opportunity to purchase or refinance, my suggestion is that now is your time. Take it and don’t look back. Could rates go lower? It is possible; however, it will take some seriously bad news to get below these levels.
Breg-ometer:
Next 7 Days: Rates may increase from these unreal levels
Next 30 Days: Bouncing around; see above
Next 90 Days: Neutral
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]
Possibly Related Posts:
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posted in Mortgages, Smyrna Vinings Real Estate |
1st
June
2010
The Week in Review:
Home loan rates ended the week just a hair higher than where they started out. However, the month of May was a great month if you were hoping for rates to go down.
What to Expect:
News from around the globe will once again drive the markets. Recently, credit rating services have been downgrading foreign debt (indicating it has become a riskier investment). This is helping home loan rates remain low as the US is still viewed as one of the safest investments.
The most important scheduled economic report this week will be Friday’s Jobs Report. Early estimates are the possibly 500,000 jobs were created. Such a large increase in jobs is a positive sign and would usually indicate rates would rise. This week it could be overshadowed by other news events
Breg-ometer:
Next 7 Days: Rates could move a bit lower
Next 30 Days: What will happen overseas? A move lower possible
Next 90 Days: Neutral
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30339]
Possibly Related Posts:
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posted in Mortgages, Smyrna Vinings Real Estate |
25th
May
2010
The Week in Review:
The European debt crisis… The declining Euro… The correction in the US stock market.
Home loan rates are near all-time lows thanks to the above factors and caused rates to decrease again last week by approximately .125%.
What to expect:
“I’d rather be lucky than good”. If you are shopping for a home or looking to refinance an existing mortgage, you don’t know how lucky you are. The financial problems overseas have caused a tidal wave that has changed the direction of both the stock and bond markets – causing long-term mortgage rates to dive lower.
The question is: how long will the condition last and will it worsen? Since there is no clear solution in sight, I have to assume this change in rate environment may be around a while. When the financial situation overseas does change, expect rates to move upwards.
Breg-ometer:
Next 7 Days: Possible daily changes in rate; decline possible
Next 30 Days: Rates could come down a bit more
Next 90 Days: Neutral
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]
Possibly Related Posts:
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posted in Mortgages, Smyrna Vinings Real Estate |
