Interest Rates outlook for February 4th – 10th

Rates for the upcoming week of February 4-10th will once again rely on external influences to determine their track over the next few days.  Last week, mortgage bond prices fell, which pushed government and conventional loan rates a bit higher by about 3/4 of a discount point.  Overall new home sales rose 4.8%, which was higher than the expected 0.8% increase.  This week, the Fed meeting adjourning Wednesday will be the most important thing to affect rates over the next several days.  Early reports are that Consumer Confidence is higher which could lead to rates moving a bit higher, but Personal Income and Outlays – a good reflection of overall confidence – could show some weakness, pushing rates down a bit.

It’s all up in the air – and that includes the weather!  Weather can have an effect on market activity, although the effects are seldom long lasting.  In most cases the most signifant effect is on monthly data.  So keep watching the weather … relatively mild weather (even with the lows we’ve been experiencing here in the NRV) so far this winter has helped to alleviate some of the energy demand analysts had feared.

Despite it all, rates continue to be very favorable and among some of the lowest in 24 months.  If you are thinking of refinancing, email me and ask to speak to a preferred lender.  And if you’re considering a purchase of real estate, let’s talk about how to take advantage of some of the record numbers of inventory now on the market! 

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