Friday, May 21, 2004

Rates Take A Dip - Hello Down There!

Rates take a dip on the charts indicating that the economy still has work to do getting itself on its feet. Still with rates as low as they are lenders and merchants wonder why loan activity has declined so sharply. It would seem that folks have greater incentive to pour borrowed money into merchant coffers while lowering their interest rates and perhaps saving a bundle on exhorbitant interest rate fees.

The question is how long will rates continue this dip and stall? At present there may be more factors leaning toward a continuation of the present scenerio over the short term. However it must be noted that June is likely to put new factors on the table one being the much loathed but highly expected Fed rate hike.

That said homeowners and buyers who have held out for better rates may see a quickly dimming light at the end of a rather short tunnel.