Rates on the Rise

Ok…what does higher than expected retail sales and a poor treasury auction equal??? The answer….higher rates…Rates have moved roughly .25% in rate higher over the past 72 hours but have seemed to have found their spot, for now, holding in the 4.75% to 4.875% range for 30 year fixed rates and 3.25% to 3.375% for 5 year ARMS. The interest rate market is looking for something to move to higher levels and it got it with the news describe above. Look for rates next week to continue to try to push to higher levels in anticipation of another Uncle Sam Treasury Auction during the week. If the auctions next week are not received well, look for rates to push higher again. However, if the auctions next week are received well, look for rates to move slightly to lower levels. Don’t look for 4.5% on the 30 year fixed handle next week…I hope I am wrong. 30 day outlook for rates are to remain in the 4.75% range to 5.25%. I guess that is not too bad considering that these levels represent some of the lowest rates we have seen for over 40 years!!!