Mortgage Interest Rate Report
Since mid-October 2007, interest rates have continued to drop with the average 30-yr fixed rate mortgage recently dancing just around 6%.
Analysis
It’s a mix-No way can the negative impact that cutbacks in construction of new homes, flat home prices, and the continuous decrease in consumer spending continue to make on the overall economy. Manufacturers experienced increases in overseas orders, but this is mostly because of weakened value of the dollar. Some positive things have happened though.
Service companies that have become part of the majority of U.S. jobs continue to report some growth., treasury notes fell and and the S&P stock index rose which signalled optimism on interest rates holding before the Fed convened. Any increase in growth seen in the third quarter could just stop because of the troubled financial markets, the cosnstruction’s downturn, the continuous increase in cost of fuel and food and declining values of homes.
It is foreseen that most probably the Feds will cut the Federal Funds Rate when it convened the next month.