Interest Rate Report - SEPTEMBER
Mortgage Rate News
Interest rates closed out August almost one-quarter percent lower than they were at the end of July.
Like we anticipated last month, August's economic figures appear to indicate the economy is slowing. The consumer confidence indicator dropped to 99.6. Anything below 100 is supposed to indicate a slide toward recession, but the figures can be volatile. Besides, since the figures were gathered, gasoline prices have begun to fall, as well as interest rates.
Guessing the direction of the economy is so much fun.
Automakers are likely to lay off some employees in the upcoming months. Radio Shack will lay off between 400 to 450 employees and notified them via email. Basically, the public is less certain about their employment future, and less willing to believe in large raises.
At the same time, prices may be creeping upward because of the spike in oil prices over the last year. Products made from petroleum products (like plastics) must increase in price, too.
Interest Rate Future
The economy isn't as weak as experts think, at least not yet. For that reason and because inflation fears are genuine, interest rates will probably rise slightly in the following month - but not drastically.