its going to be a big week in the mortgages rate game. Rates are on a roller coaster ride, and this has been happening since December. This past Friday rates were to say to be down for the week, however the stock mark swang to a gain raising rates for the week.
This week rates will be effected form several economic reports including the Federal reserves preferred inflation marker- the Personal Consumption Expenditures Report. The PCE is a cost of living index. also the fed Chairman will speak to congress on Wednesday.
It is not believed that in will say the economy is in a recession, but he should give some guidance on how fare fed is going to cute rates. He will probably not give any exact number with will show cause for concern in the market.
Has they cut rates your going to see Long term bonds raise, which will cause a ricse ARM mortgages. I would not advice a client to go below a 5/1 arm. Anything shorter is nto long enough to ride out a market decline. the 10/1 continually is getting better and better option.
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