Long Beach Real Estate-Downtown Long Beach Condos

This could be a pivotal week for mortgage rates.  If you are buying or refinancing a home in Long Beach, you should pay heed to the advice I've been giving this past week.  We are still advising clients to Cautiously Float their rate.  This means that you should be prepared to lock-in the rate on your loan program quickly.  For detailed commentary, click through to the full story:

Tomorrow may be the defining day for the near-term future of mortgage rates.  The Core Personal Consumer Expenditures number will be out at 5:30AM, California time.  The PCE is essentially a measure of goods and services targeted towards individuals and consumed by individuals. This report is the Fed's favorite gauge on inflation.  This number is due out for both June (measuring the change from May) and year over year.    A stronger than expected number suggests that the American consumer has not slowed down his spending; this would cause the Fed to consider raising rates.

The stock market is the 800 pound gorilla in the rate equation.  Should it continue its decline into August, money from stocks will flow into bonds; that would be positive for rates.  Our gut feeling is that the economy is sputtering on five cylinders and an economic slowdown is imminent.  Better rates should be on the horizon but we'll continue to be cautiously optimistic.

I'll be speaking at the Inman RE Connect conference in San Francisco this week so it may be hard to post timely information.  My intention is to post every other day but my schedule will cause me to be more reactive than proactive this week.  Keep checking back daily for breaking news.

Related Posts