Weekly Rates update~Preferred Mortgage

Mortgage rates continued to remain fairly flat last week, even as the recovery seemed to solidify its
footing. The Federal Reserve left interest rates unchanged, as expected. The accompanying policy
statement did note that “economic activity has continued to strengthen and that the labor market is
beginning to improve.” While the Fed believes that it will keep interest rates low for an "extended
period" of time, it is worth noting that interest rates below 1.0% can be considered low. With the Fed
Funds rate at 0.25%, the Fed could begin lifting rates at any time. GDP came in at 3.2%, the third
quarter in a row in positive territory.
Two reports will probably dominate this week’s economic news: the ISM Manufacturing Index, and
the Employment Report. If the ISM Index climbs above 60 and unemployment shrinks with more
than 200, 000 jobs created last month, we could see mortgage rates moving upward. However, even
very positive reports will continued to be tempered by international concerns over Greece’s bailout.

~Rob Clark, Preferred Mortgage