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Interest rates continue to be offered at 12 month lows!  And for the first time in a year, Personal Income was reported higher than Personal Spending–meaning that as a country we are not living on credit for the first time since last Spring.  Perhaps that is why we Americans are so optimistic about the future as measured by Consumer Sentiment, which rose higher than analysts anticipated.

Some forecast that interest rates will continue to drop while others argue that rates have bottomed out and will rise from here as the Feds continue to sell off their holdings in mortgages.  I can’t tell the future; what I see though is that since the Federal Reserve started slowing down their purchases of Mortgage Backed Securities in December, interest rates have dropped about 3/4%.