Mortgage UPDate!

Last week saw long-term mortgage rates drift downward to milti-year lows as economic news continues to review a struggling economy. Overal retail sales dropped 1.8% which was near expectations. However most of the drop came from gas and auto sales. Certain segments including electronics and clothes actually saw an increase in sales.

Even with the hugh week of economic news due, we may see mortgage rates stay relatively flat. The most important item of the week is likely the release of the Fed's policy statement following its last meeting fo teh year. Expectations are for another interest rate cut, but the Fed's rate is having slightly less influence on mortgage rates in these challenging times. The recent promise of Treasury support for the secondary mortgage market has driven rates about as far down as is reasonable to expect without some significant event or governmnet program. Continued sour economic news and more evidence of waning inflationary presure should service to keep rates relatively low.