Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – December 16, 2009

CPI Shows Inflation In Check

When Bernanke Speaks…

The Federal Reserve Board will wrap up their meeting today, and depending on the comments that they make, markets may move accordingly.  The Fed’s in somewhat of a precarious position, as they try to weigh the benefit of keeping the overnight rate at .25%, or raise it to stem off inflation.  If they raise it too early, it could have a negative effect on economic growth.  So, we wait…

Core CPI In At < Expectations

Virtually unchanged!  The Core Consumer Price Index was expected to rise 0.1%, but stayed at last month’s levels.  So, it shows that our concern regarding inflation at the production level, is not really a threat, at the consumer level.  So, rates are remaining low with this information, however, depending upon the Fed’s Statements, later today, rates may move in one direction, or another, quite reactively.

Housing Outlook

Building Permits increased 6.0% this past month.  Another good sign of a recovering Housing Market.

Locking Advice

Carefully float into the Fed’s Comments today.  We have uploaded clients’ applications and saved them on our banks’ locking website.  We can lock at the click of a button…

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This entry was posted on Wednesday, December 16th, 2009 at 9:07 am and is filed under Chico Home Loans, Home Buying, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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