After just returning from Disneyland with my family, this market reminds me of “Mr. Toads Wild Ride” or for older Disney fans, “California Screamin’ “.
Rates are going to be volatile this week. We will likely see many rate changes throughout the day. Last week rates hit a low of 5.75% but this morning we are at 6.375%. The Feds are meeting this week and most analysts believe they will lower the Fed rate by at least .5%, unfortunately, this rate is not directly tied to mortgage rates. Rates worsened again today because mortgage bonds continue to slide and remain near their widest levels from Treasuries.
Funds are starting to be injected to some of the banks this week; let’s hope that will help unclog the lending markets.
Consumer confidence was the lowest on record this morning for October.
Housing prices in 20 major metro areas fell 16%.
This week is full of reports and meetings, so what I guess I am trying to say, is to hang on and make sure you lock in a rate, so you are protected. On a positive note, home sales were up 2.7% and inventories are down, getting the market closer in check. It is still a great time to buy, even though rates are up this week, rates are still great! Remember the 1970-80’s?