rates lowest in 7 months, but have stone walled.

Rates hit a 7 month low on December 27th. But, that doesn’t mean that we are going to continue trending in that direction. Currently the bond market that dictates what the rate is going to be is waiting for the first report to come out in January. Rates have stone walled since dropping below 7% late last month barely changing more than a tenth or even a hundredth of a point per day. While the quick drop was a welcome one the current conditions prove that uncertainty in the economy is still strong.

What all of this means is that we think that the soft landing is coming or even currently happening. Without a clear definition of what that means though the fed is taking it month by month. So as improvements are seen we will begin to see the rates continue dropping more quickly as jobs reports and inflation data is revealed, then slow until the next report come out. Essentially we are still in a wait and see period but we at least get to wait while rates are floating around 6.5% a welcome change from previous months. Don’t expect rates to steadily drop. Reports will dictate the rate for the next year and if the economy starts to show signs of runaway inflation, job loss, or poor performance in other areas the fed has stated that it will raise the borrow rate again.

Expect to see more movement as we head towards the second week of January and then the same pattern of uncertainty for a few months until experts can say for certain that the economy is steaming towards a healthy place.