Excerpt from: Flagstaff Mortgages
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| January 07, 2008 | | If you're buying a Flagstaff home, should you lock now or later? | The general sentiment among market participants is that mortgage bond prices will trade in today's range or possible a bit lower as the Fed continues to cut rates to stimulate the economy. Keep in mind that market corrections are typically fast and furious. Any future data releases showing strength in the economy could lead to mortgage interest rate volatility, so lower rates are not a given. A cautious approach toward decisions of whether to float or lock as you await closing on your home should be taken. Today bonds started in the red but have rebounded as stock market losses boost Treasuries and investors continue to worry over the weakening U.S. economy. The dismal U.S. jobs report on Friday led many to believe that the Fed may cut by .50% at the end of January, but Kiplinger reports that a .25% is more likely. Because of inflation concerns the Fed will be reluctant to open the monetary flood gates when costly energy food and other essential items threaten to push inflation higher. I recommend locking today as the likelihood of lower rates this month does not out weight the risk. | |
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