Loan rates improved for the 3rd straight week last week. Rates are in a goofy spot right now and could very easily break in any of a few directions.
We have a number of things holding rates lower right now.
Consumer Spending: Consumer sentiment is awful. That could slow consumer spending heading into the holidays. That presents a major challenge for an economy that is trying to rebound.
Jobs: We're also unlikely to see any major changes to the employment figures (another contributing factor in consumer spending). With the holidays taking out so many days between now and year end, this isn't traditionally a high paced hiring season and there's no data to suggest this year will be any different.
Currency: With the US Dollar plummeting right now, foreign investment in bonds is a virtual lock.
All of these things make rates go lower. However, when rates get this low, it typically only takes one piece of news for them to jump and jump quickly.
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