Interest rate prediction

June 27, 2005 LOS ANGELES -- Last week showed a bit of interest rate fluctuation for home loans, but ended at "par" you might say. We saw a minuscule decrease at the end of last week in 30-year fixed interest rates.

It appears that although the Federal Reserve doesn't have a full dance card where economic releases are concerned, there is some data to be divulged. The Fed's open market committee meeting will happen on Thursday, so if we see much of a change in mortgage rates it will be late that day or on Friday morning.

All Fed talk aside, I believe the home loan interest rate trend will stay much the same as it did last week.

Many bond market traders are expecting the Federal Reserve to raise interest rates again this Thursday, but much of the buzz is just speculative. At the close of the meeting Thursday the Alan Greenspan, chairman, will denote the Fed's position on increasing rates throughout the remainder of the year in harmony with the promise they made one year prior.

At any rate, I predict rates will stay at an even keel or, perhaps, drop a slight amount earlier in the week. Perhaps adjustable rates and jumbo home loan rates will move a bit, but don't expect too much. - Article by Stockton Marquette for CMR Home Loans.

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