Consumer Confidence Report Causes Rates to Increase
29 May 2007
Today’s mortgage rates were down after stronger than expected consumer confidence posted.ﾃつ ﾃつ Stocks are up as well, and we should expect an increase of approximately .125 to retail mortgage rates today over Friday.
The CCI (Consumer Confidence Index) showed a reading of 108, stronger than previously expected.ﾃつ This is bad news for mortgage rates because consumer confidence in the economy usually will prevent lower interest rates.
Tomorrow will be a quiet day, but there will be the FOMC meeting minutes released. ﾃつ Any interpretation of comments that are outside of expectations could also cause rates to increase or decrease.
On Thursday the first revision to the 1Q GDP (Gross Domestic Product) will be released.ﾃつ The GDP is a sum of all goods and services produced int he US and is probably the best indicator of overall economic growth in the United States.ﾃつ If the report shows that our economy is not expanding at the expected pace, we could see lower interest rates.
Friday’s jobs reports could also cause volatility.
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