Fed announcement…….. the verdict is……….
Breaking News….. The Federal Reserve announced the buy back program would be $600 Billion by the end of the second quarter 2011. Equal to $75 Billion per month, less than the $100 Billion the market was speculating on. Comments were to keep rates “exceptionally low” how is this translating to home owners? Between now and June 2011 we should see the same patterns of interest rates as we did in 2009. Rates from now will be volitile from any economic news like the employment report this Friday, November 5th.
The mortgage backed securities which translates to mortgage rates are trading all over the board at the moment, at the end of the announcement it sold off and then is now moving higher. Keep in mind we opened with rates at their lowest point in 3 weeks this morning and we are still holding.
Is timing right for you to begin your loan process? Contact us today to ask questions and be informed.
Stay tuned for any further breaking news. We will break this down further on our mortgage rate watch tomorrow morning.