June 19, 2005 LOS ANGELES -- Home loan
interest rate predictions have left many forecasters like myself in a pinch as
far as the old reliability meter is concerned in the past 4 months or so.
Largely to blame recently (if blame can be cast) is the fact
that The Federal Reserve hinted at bringing "gradual and measured" interest rate
hikes during the course 2005 to a halt. When originally announced, The Fed based
their possible termination of this campaign on economic data indicating
inflationary pressure have been controlled to the point that necessity of
raising mortgage rates to stimulate our economy is no longer a factor.
To recap fluctuations in the past two weeks:
Rates dropped to historically low levels
again two weeks ago but have jumped upwards a bit as-of the end of last week.
I predict that we will see a gain in
home loan interest rates this week following late-week economic news
released by the Fed which indicated they may continue their
interest rate hikes this
year in order to stabilize things on the eco-front a bit more. I predict that
any increases should not be too substantive. - Forecast by
Stockton Marquette;
Mortgage and Home Finance Industry Columnist.
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