Today one of the major factors in the interest rate game came back worse than expected. That factor is Consumer Confidence. Analysts feel that this hesitancy is a result of higher gas prices and the madness that is happening all over all financial markets. This is the first we have seen actual consequences since the exposure of Subprime Mortgage woes. People are very very nervous about where we are going with these issues, and aren't spending as a result. Kind of like a recession type mentality, where everyone stays home, conserves, and takes a more reserved lifestyle. This isn't a good sign for the immediate financial spending. This can hurt the economy. The normal effect on the mortgage rates would be to see a decrease in rates to try to stimulate some action, however, the Fed released a statement that they are still concerned with inflation. So for the day, so far rates are slightly up, even with consumer confidence lacking at this time.
You can read more at www.cnnmoney.com
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