San Luis Obispo Ca Real Estate

Lending forcast for the first week of 2007

In terms of economic news, the week ahead will be fairly slow, until Friday’s potentially high impact Retail Sales Report. And whenever the market lacks economic reports and data to trade on, technical indicators like historic highs, lows and trendlines will generally take center stage.And the technicals are on our side, in terms of seeing Bond pricing and home loan rates stabilizing, and perhaps even seeing more improvement in the coming days. Take a look at the chart below,(Click here to see file)Fannie Mae.pdf,which shows how Bonds have used the 50-day Moving Average (which is basically the average of where Bond pricing has been for the past 50 days) as a floor of support. This 50-day Moving Average is rising underneath Bonds feet, helping pricing move higher, meaning home loan rates move lower. And even after Friday’s decline, Bonds clawed their way back above the 50-day Moving Average…and if they can hold their ground during the coming week, the improving trend appears to be good news for Bonds and home loan rates.Bottom line: in the absence of any surprises during the week, Bond pricing and home loan rates should stabilize and perhaps improve slightly, due to the positive technical picture currently in place.