Despite the gradual rise in mortgage rates over the last two months, housing starts were actually up in September, highlighting the resiliency of the housing market. |
Earlier in the week, interest rates were a bit higher, as financial markets were a little anxious about what language the Federal Reserve (Fed) would use in its statement this month. |
Early indicators are showing an increase in both the manufacturing and service industries in October, welcome signs that the economy continues to improve, |
Employment figures for February are due out tomorrow. The expectation is that over 100,000 much needed jobs will have been created last month and that will help sustain economic growth. |
Employment figures released recently, along with the information garnered in the Beige Book, support the market's notion that the economy is beginning to slow, reducing the immediate need for the Fed to take action when it meets later this month. Thus, there is no upward pressure on interest rates, |
Even if the loan adjusts upward next year, the amount ARMs are allowed to rise is typically capped at 2 more percentage points. If that happened, the interest rate would be at 7 percent at most -- no higher than the fixed-rate loans, |
Even though long-term rates rose for the third consecutive week, they still remain below six percent -- still relatively close to the phenomenally low rates we experienced in June of 2003. We believe that the housing industry, although poised to ease a bit, will still continue to bustle as the economy continues to expand steadily and long-term rates remain affordable. |
Even though we've seen [rates] rise since March, 6 percent is an incredibly cheap rate. |
Everyone is looking for inflation to appear, but no one seems able to find it. Thus, with no inflationary pressure mortgage rates have continued to slip for the past few weeks, and we expect to see no big change in rates anytime in the foreseeable future. |
Existing home sales in May were at the second highest level ever recorded, suggesting the housing market still has a good head of steam, |
Existing home sales were up a little in March as mortgage rates eased from February's higher level, |
Existing home sales were up a little in March as mortgage rates eased from February's higher level. |
Federal Reserve Board Chairman Alan Greenspan told Congress that he's optimistic that the economy will take off in the second half of this year. In response, bond yields rose dramatically, taking mortgage rates up with them. |
Feeling more comfortable about the upcoming economic rebound, the financial markets relaxed a bit this week. With the market more settled this week, interest rates on fixed-rate mortgages eased this [week] to the lowest rate in five weeks. |
Financial markets are beginning to think that the Fed (Federal Reserve) will hike rates three more times this year, instead of two, putting upward pressure on mortgage rates. |