Excerpts from HSH newsletter for the week ended October 6, 2006:
Mortgage rates ticked barely higher this week. The interesting selloff on Friday hasn’t changed the big picture in terms of the Fed and economy too much, but points to slightly higher interest rates as the week begins. We know that the second quarter sported weak growth, and the third quarter probably wasn’t much better, but if growth begins to shows a greater level of firmness for October, interest rates may tick higher as we go through the fourth quarter, even if not too greatly. Next week’s a short one, with a Monday holiday, but minutes from the last FOMC meeting, the Beige Book, Retail Sales and Import and Export Prices will populate the calendar. We’ll expect an increase of at least a few basis points in the averages.