Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – April 14, 2010

Technical Factors Will Determine Interest Rates

Stocks Poised For Rate Adjustments

Technical factors will provide the path for interest rates, this morning.  Earnings’ season is upon us, and as reports roll out, through the next few weeks, Stocks and Bonds will be all over the board.  The market has already priced itself for healthy reports, so anything different, like Alcoa’s shortfalls, will likely cause nervousness in the market.  I’m not sure, but I have a hunch that Stocks might suffer a bit, which will benefit interest rates, as investors move to the safe-haven of Bonds and Mortgage-Backed Securities.  It will be fun to watch.

Inflation In Check

Couple of things happening this morning.  The Consumer Price Index (CPI), and Core CPI came in at very low levels.  As a matter of fact, the year-over-year Core CPI is measuring at 1.1%.  It’s the Fed’s desire for inflationary measuring devices, is to stay within 1.0%-2.0%.  So this cool reading has led Fed Chairman Ben Bernanke to continue to state that interest rates will remain low, for “an extended period of time.”

Retail Sales Up

Consumer spending has increased, compared to last month’s dismal numbers.  Spending is up 1.6%, but it’s not certain as to whether this swing is due to a healthier economy, or better weather, as spring rolls in.

FOMC Meeting Scheduled

This month, April 27-28, The Federal Open Market Committee will gather together to discuss the economic status of the country.

With Good Interest Rates Available...

Locking Advice

Today’s a tough call.  I think we still take advantage of where rates are, however, if you’re still looking for a home and cannot lock into an interest rate, don’t be too alarmed.  Even though there is a lot of resistance to lower rates, the Stock Market has already priced in exceptional earnings predictions, and I’m just not so sure that, with Alcoa’s lead, other companies might show similar difficult times, as well.  It’s going to be a bumpy ride, but hang in there.

Related Must Reads

What “Extended Period” means for Interest Rates

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This entry was posted on Wednesday, April 14th, 2010 at 8:07 am and is filed under Chico Home Loans, Home Buying, Interest Rates, Weekly Market Report. 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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