Real Estate Blog - Lower Interest Rates Ahead?

Home : Blogs : Florida's #1 Mortgage Planner : Florida's #1 Mortgage Planner - Managing Equity and Debt Strategically™

Lower Interest Rates Ahead?

At 10am EDT this morning, two normally moderate impact reports were released that is currently moving the markets.

Both Existing Home Sales and Consumer Confidence were released this morning and both missed expectations. What does that mean?

Continued weakness in the housing market is apparent based on the Exisitng Home Sales numbers, but further insight will be provided with tomorrow's New Home Sales numbers.

Consumer Confidence is also dropping, indicating that Americans are lowering their expectations of the economy and the future. It is directly correlated to the strength of consumer spending. Lower confidence numbers generally decrease inflationary fears and ultimately drive prices higher on bonds.

OK, what it really means is that Mortgage Backed Securities, the true driving force behind interest rates, like the news and are reacting positively. They have now pierced through tough resistance and if they can hold on, or even be pushed higher by tomorrow's New Home Sales report, then look to see interest rates drop in the near future.

Posted by Florida's #1 Mortgage Planner on 04/24/2007 09:23 AM

Comments (5)

mortgage advice, financial advice, mortgage planner, certified mortgage planner, florida mortgage, florida mortgage planner

5 Comments on Lower Interest Rates Ahead?

APR

2007

thank you for the post. In this odd time of real estate adjustment, it's good to stay on top of all economic indicators.

This would be great. We need something to draw more buyers into this market and lower interest rates would be a move in the right direction. Now if some of the sellers in my market would just drop their asking prices a bit, we might see some of these huge inventories go down!

I think a lowering of rates would be great for the economy. Keep the posts coming!

Wow thanks for the insight. I would love to see lower rates.

Thank you all for your comments. I forgot to include this link to my blog that covers updates on the mortgage market on a daily basis (well almost every day). Click the link below if you want to check it out.

http://www.solidrockmortgage.com/floridamortgagedaily/

This blog does not allow anonymous comments