Interest to Remain Moving Target in 07

The rolling economic data is keeping Ben Bernanke and the Federal Reserve on their toes. And in return, the Fed is keeping the investment community on their toes. As recently as 3 months ago, the futures market had a probable interest rate cut predicted as soon as December 06. By the time December rolled around, those odds had faded, and now, nothing is expected until the third or fourth quarter - if at all.

The Fed is still eyeing inflation as their greatest concern. They have continued to suggest that the "extent and timing of additional firming" will depend on this incoming rolling data. The bias is in fact on a tightening as the next move, but its a pretty modest one at this point.

Through the eyes of Real Estate Finance and Mortgage Planning, this has rates continuing to stay in a narrow range, and they are expected to do so through much of the year.