Many sources are saying that interest rates are going up due to inflation concerns and recent data that has just been recorded. Here's info received by sources 6/13/2007:
Interest rate news
Mortgage bond prices are higher mid-morning erasing some of the losses seen yesterday afternoon. This despite strong economic data released at the open.
In news released this morning, retail sales rose 1.4%, much stronger than expectation for an increase of 0.6%. Strong retail sales can be viewed as inflationary. Traders initially sold bonds in the face of the data, however buyers finally emerged and have stabilized rates.
Traders are now waiting for the release of Fed Beige Book data set for 2:00 ET. This report details economic conditions across the US. If the report indicates either strong economic activity or rising inflation, rates may suffer.
Rising interest rates on home loans could keep buyers away from the market
Jun 12, 2007 3:00 AM (2 days ago)
WASHINGTON (Map, News) - Interest rates on 30-year home mortgages are at their highest level in the past 10 months, inching closer to the point that could keep buyers away from the market, experts said.
According to McLean-based mortgage lender Freddie Mac, rates on these types of mortgages closed at 6.53 last week, up sharply from 6.42 the previous week and the fourth straight week rates have gone up....
...“Psychologically, we’ve been so accustomed to something in the 6 percent ranges, that if we go over 7 — which we’re fast approaching — it’s going to be a new level,” he said.
When asked if he believes rates will climb above 7 percent, Connelly said, “I think [they will]. The economy is strong enough that the Federal Reserve has decided not to lower interest rates.”