WEEK IN REVIEW: Low Mortgage Interest Rates Will be Here Today, Gone Tomorrow
“Don’t be fooled by today’s low rates,” said Former Fed Chairman Alan Greenspan this week, adding that the present low inflation and low long-term rate environment have fostered a “sense of complacency that can have dire consequences.” Mr. Greenspan also that “long-term rate increases can emerge with unexpected suddenness.” The fact is, there are no fundamental reasons why home loan rates should be as low as they presently are. The confluence of factors all coming together at the same time have made for an incredible low rate opportunity, but it won’t last long and can change very quickly.
Forecast for the COMING WEEK: Upcoming Federal Reserve Meeting & Mortgage Rates
On Wednesday the Fed will release their rate decision and Policy Statement at the conclusion of their Federal Open Market Committee meeting. There is speculation that the Fed may lower their 2010 and 2011 growth targets for GDP making for a very interesting and important Fed Meeting next week, as it could have an important bearing on the direction of rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
MARKET VIEW: Students & Credit Card Debt
Using credit cards wisely is important for people of all ages, especially for young people just starting out. In fact, a recent study revealed that 84% of college undergraduates had at least one credit card and half of college students had four or more cards. What’s more, the average (mean) balance grew to $3,173, which was higher than the findings in previous studies.
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For more information, contact Dennis Sullivan: Office (410) 750-2167, www.DennisSullivan.org.
Southern Trust Mortgage, LLC is proud to be an Equal Opportunity Lender licensed in SC, MD, DE, GA, WV, DC, L-105905, 5104, 165679, 7342, S-5, 169, MLB-3545. Southern Trust operates as a subsidiary of Middleburg Bank in VA, NC, and PA (FDIC #6881).
Mid-Atlantic Builders creates new luxury homes in Maryland, including Luxury Homes in Prince George’s County, Homes in Upper Marlboro, and Maryland New Homes. We are the Luxury Maryland Homebuilder. crafting only the finest PG County New Homes and luxury communities, including Meadow Creek, Woodmore North, Ashleigh, The Villages of Savannah, and Beechtree.
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