“Financial markets are feeling more confident that the Fed will not raise rates any time soon. Add to that the fact that recent economic data shows core inflation is less than the market expects, and we see mortgage rates drop once again.”
“We may see a market reaction to the release of September employment numbers due out tomorrow. It could potentially alter the momentum of mortgage rate change in the near future.”
“Bond yields have been creeping up on an almost daily basis since the beginning of October, pushing mortgage rates up as they go, ... Inflation remains low, however, and we expect that to continue into 2004 and beyond. And as long as it does, we won't see mortgage rates rising very dramatically.”
“Meanwhile, regional indicators of manufacturing have shown some improvement over the month, most notably in New York, another hopeful sign the economy is actually gaining additional strength.”
“Early indicators are showing an increase in both the manufacturing and service industries in October, welcome signs that the economy continues to improve,”
“Mortgage rates remained fairly stable this week as the financial markets tried to discern just how quickly the economy is growing and how sustainable that growth will be.”
“Meanwhile, fueled by low, affordable mortgage rates, housing starts came in at a nearly 18-year high in October, with an upward revision in September. Our latest economic forecast calls for low inflation into the next year and as long as that holds true, there will be little upward pressure that might force interest rates significantly higher.”
“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.”
