Concerning interest rate trends, the gum ball machine concept again in effect. The loose mortgage term "gum ball machine" defined: this writer's observation that from day to day rates can fluctuate considerably, much the same as the randomness of what color gum ball a chewing gum vending device will deliver. Bottom line? Morgage interest rate percentages a crap shoot lately at best: sometimes linear adjustments to interest rate sheets chart themselves numerous times throughout mortgage day.
The federal government released interest rate news denoting recent changes to overall "language" of mortgage guidelines. Though the statement catalyzed rapid movement in mortgage rates across U.S. real estate markets, comfort is knowing predictions and forecasts show Fed will hold mortgage rates constant (to a degree) through 2004.
Contributing to predicted mortgage rate "comfort zones" surviving 2004 are supported by US bond market trend volatility. Real estate analysts agree rate predictions, forecasts of low interest rate home loan percentages continuance largely based upon bond market indicators. Federal rate control changes to mortgage, interest rate language is also substantial support for the forecast.
Following 3 news items should offer loan rate comparison shoppers confidence because:
two important sides of home loan, mortgage marketplace agree: forecasting synonymous low rate levels (understand that agreement by two sides generally is an anomaly). Agreement of the two parties should offer those comparison shopping rates a slight bump in confidence of continued rate appeal.
economy and financial market low rates, stability (greenlight) somewhat depends on low interest rate home loan percentages.
election year political gaming and re-election efforts of republican party likely means Bush will fight harder to stay in good graces of American pocketbooks, banks. A great way to do this is to cheerlead mortgage rate appeal.
Synopsis: Predicting the presence of thin (yet comfortable) security blanket for home mortgagees and refinancing borrowers in 2004 (cross your fingers, this is a mortgage rate "prediction" and nothing definite when it comes to mortgage rate).
Nothing's for certain: Although lower interest rate for mortgage payment applications such as refinances or purchase loans has positive 2004 forecast, beware of widely adjustable rate chart, mortgage rate sheet percentage rates. This week's expectations for interest rates: mortgage rates presented by companies, brokers, banks countrywide will be volatile (yet low). Safety comes from locking mortgage rate immediately, as there is little depth left in the rate well for interest APR to sink.
Putting fine point on it: We predict early week mortgage rates will resurge from over-reaction to fed prime rate statement. Thursday should experience most radical adjustments in mortgage rates, charts because employment data collected countrywide late January will be released. Likelihood that statistics will harmonize with "negative" employment statement expectations strong. Adverse numbers for employment will have positive influence on mortgage rates. In fact, rates could plummet this month to what may be the lowest interest rates all year if the report meets forecasts. On flip-side, if employment report indicates December experienced short term employment corrections, homeowners considering locking rate, applying - submitting refinance application shouldn't procrastinate: rates will shoot upward in subsequent future if that's the case.
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