Rates:

Rates once again remained pretty stable this week, with the 10 year bond and rates all trading in a very narrow range as to not really affect rates.

Lots of chatter in the world that these may be the bottom of the rates and they will hang out here for a while, but we have heard that before, when rates were 5.25% and then again when rates were 4.25%.

There has been quite a bit of economic news, but it has all been pretty much ignored and Congress and the President are battling the "fiscal cliff" issue.

My gut feeling is that the Bush Tax cuts will be extended but only for people making <$250,000.  But I do feel that the mortgage interest deduction will be reduce from $1,000,000 down to $500,000.  And if you really think about it, most people in that category are not getting a huge tax break due to the mortgage instrest credit anyways.

So I feel that rates should stabilize for the remainder of the year, but watch out come the 1st of the year.  As long as they satisfy the Fiscal Cliff, then more traders will focus on the economy, they more volatility in Rates.

Some of the economic news highlighted for this week:
-Consumer Price Index, inflation out our level, was once again in check, remember that inflation increasing will have a VERY negative affect on rates.
-Europe fell back into a recession, but we all knew that anyways, about 2 months ago.
-Phili Fed Index, fell to -10.7, below ZERO indicate contraction in this area, not a good sign.
-Greece got a 2 year reprieve, but once again just putting a band aid of a amputated arm.
 

Best call, lock them, there is too much pressure for them to raise and for them to fall.

Housing Information:

Found the video below regarding housing and the potential upswing.  And I would have to agree with it.  In the Treasure Valley, builders are going NUTS!!!  As I indicated in past Blogs, I felt that the builders were in the best situation coming out of the recovery, and well, every once in a while I am right (should of bought a lottery ticket)

Lots of dirt being moved in Ada and Canyon, and I hear the bare land in increasing in value.  All good signs!