Interest rate outlook

Questions increase about interest rate outlooks as the stock market continues to point to economic rebound.

With the rate markets focusing primarily on how equity markets perform these days, unless stocks roll over the rate markets are not likely to work lower in rates. It now appears that it will take a market surprise to reverse the current bullish outlook for the economy. Until something more than talk occurs stocks won't buckle; that surprise could be next week's employment report if it shows a big increase in the unemployment rate and larger drop in non-farm job growth---not forecasting it, but whatever the trigger will be the markets won't fall back much without some kind of sentiment change even if it short-lived.

Don't know where or what it will be but we believe it will happen in Sept and push mortgage rates to 5.00% and lower.