Interest Rates Moving This Week

This week could be a very volatile week in the interest rate market. It appears that there are several bits of economic news that will be revealed this week that are expected to have some sort of affect on the rates. The first will be Tuesday...Consumer Confidence Index for April comes out. This is an attempt at foreseeing future spending of consumers. There are 6 other pieces to hit this week too, so keep your eyes on the market and touch base with your preferred mortgage consultant if you think your refinancing rate threshold is hit.
It feels like the market in Collin County is starting to churn. Lots of new client looking for prequalifications for loans in the last couple weeks.
Have a great week!
Brad

Interest Rates Today and the Market Expectations

Have you ever taken a week or two and read the commentary from day to day about the economy and it's expectations? Have you ever noticed that every day seems to contradict the previous days expectations? Well, thats not necessarily the case, but it sometimes seems that way in the last year or so. I continue to say that the American Economy runs on placebo. All arrows continue to point to recession, poor economic market in reference to the 90's, and little hope for a housing market to pick up steam quickly. The "market watchers" at Wells Fargo, I think, see things similar as I do. They wrote in a News Letter this week about their views. Put like this, Wells Fargo writer said, we have seen some "irrational exuberance in our years of market watching, but nothing like what is currently going on in the stock markets." They go on to say how Friday's employment report mentioned 232k in first quarter losses and 80k in last month job losses alone. Remembering the supply and demand from economics 101. When the economy is doing well, people want a piece of it and the demand goes up..you want your money in the public stock that will also go up...WHEN THE MARKET IS GOOD. When the aforementioned employment losses were reported to the public, stock prices went up. Wells Fargo writer says similar to my belief, "it is absurd that the economy is showing every indication of recession and this will hurt the corporate profits, so stock prices should be falling and they are not." Being that the stock market made a positive move after such negative reports, DO THEY KNOW SOMETHING WE DON'T KNOW? In conclusion, rates have drizzle downward over the past couple weeks but nothing significant. When we see a day open with lower rates than the previous day, we usually follow that up in a day or so of a short up swing...lather, rinse, and repeat, and you get what has happened over the past couple weeks.
Experts still expect the Fed to lower prime again soon...I know it has helped on my home equity line of credit. Best of luck in your home buying, shopping, and refinancing!