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Rate news for this week

By
Real Estate Agent with The Real Estate Bundle

Here is some news regarding the rate watch for this week. This information is from my good friend Alisa DeFalco at CTX mortgage.

Forecast for the Week

Hold onto your hat...this week features a juicy and potentially market moving economic calendar. We'll get a look at the Fed's favorite measure of inflation, Personal Consumption Expenditures (PCE); the always intriguing monthly Jobs Report; and if that weren't enough action, the next interest rate decision and policy statement from the Fed.

The most recent reports seem to indicate that inflation is cooling, and responding to the Fed's long string of rate hikes during 2005 and 2006. But they know they need to keep an ever-vigilant eye open. Some Fed members have felt that more hikes are needed - most notably, Fed President Jeffrey "the Dissenter" Lacker, whose next turn to officially vote won't happen for a few years. Will new voting members voice the same concerns? We'll soon find out as the news unfolds this week. If the reports of the week show inflation moving higher, or if Friday brings a hot jobs number - Bonds could move lower and cause home loan rates to move higher.

But...one technical factor in favor of Bonds and home loan rates holding their ground is a nice floor of support, just underfoot present levels, as seen in the chart below. Although Bond pricing and home loan rates have worsened slightly since the beginning of the year, this level might just help stop the bleeding if the upcoming news does indeed come in hot.