Rate Predictions?

By
Real Estate Agent with Big Block Realty Inc. DRE # 01318353

Any one care to give their predictions if rates will go down much in the next few months.  I know there are a lot of people out there that follow the markets and indicators very closely.

 This is what RealEstateABC.com had to say about future rates:

Interest Rate Future

In spite of the bump in rates at the end of May, we do not anticipate a sustained surge. A gradual increase may continue for the next few months, though very slowly, but as economic statistics continue to compile, we think it may show a slowing economy with inflation under control. That would probably send interest back down.

As always, no predictions can be guaranteed.

 

Pretty safe prediction.

 Any predictions on the real estate market coming back to steady ground?

 

 

Comments (1)

Shawn M.
VPS - Seattle, WA

There are a number of factors that will impact rates -one of which is initial jobless claims which were reported at 311,000 which was around what was expected. Rates went up a bit in reaction to economic news but I anticipate based on the information I have at my disposal things will level out and rates will improve. 

For example, the Core PPI index (basically the Producer Price Index minus food and energy prices) came in for the year at 1.6% which is a good sign that inflation is under control and that should help with improving rates. Tomorrow Core CPI report will be a key...if it comes in at .2 for the month of May or better (which is what is expected), rates will improve. If not, then rates will either remain stable or worsen at least in the short term unless there is a CPI report on Friday that comes in around the expected .6 rate.
Jun 14, 2007 09:40 AM