Interest Rates rising or falling???

"CONSUMER PRICES HELD STEADY IN JULY The Labor Department reported today that consumer prices remained unchanged in July but indicated inflation worries are still not severe enough to push the Federal Reserve Board to lower interest rates. According to the department's monthly survey of retail prices, the Consumer Price Index (CPI) rose 0.1 percent in July following a 0.2 jump in June, up 2.4 percent from July 2006.
Energy costs are falling after considerable spikes earlier this year, according to the report. Gasoline prices dropped by 1.7 percent in July, helping to hold inflation pressures down to a low simmer and bolstering the government's position that serious economic erosion has yet to warrant the lowering of interest rates." As per today's report from California Association of Realtors.

Where are we going........

The Fed continued to keep rates unchanged and long-term rates seemed to follow suit with little or no change in mortgage rates for a stretch of about six months or so........then, everything went crazy. We had what was probably a long overdue adjustment of interest rates with 30 yr fixed rate loans now running on average from 6.75-7.25% depending on loan size, credit score, points paid or not and day of the week! This "self-adjustment" will probably keep the Fed from actually raising rates any time soon. Keep in mind that it was only about 6 yrs ago that 30 year fixed rates were 8.75%......so in the grand scheme of things, rates are still pretty good. This information was provided by my mortgage broker, as of the end of July. Sorry, I was away for a little while. I'm back and ready to answer any questions about Sunrise Villas.