The Week in Review:
Home loan rates ended the week about .25% higher than they started out. The increase was primarily related to poor treasury auctions and jitters about the end of the Fed’s Mortgage-backed Securities purchase program.
What to Expect:
Well, the event we’ve been talking about so long is here, the last days of the Fed’s Mortgage-backed Securities purchase program. The program designed to provide stimulus to keep long-term interest rates low will end on March 31.
What will happen? We don’t know how the markets will react initially but this week is one where we could see significant volatility. In the long-term, rates will begin to rise but the next few weeks will be peppered with wide swings in daily rates.
ONE MONTH LEFT: Another program about to go the way of the dinosaur is the homebuyer tax credit. The tax incentive of up to $8,000 ends on April 30. To qualify, you need to find a home and be under contract by April 30 and close by June 30. Don’t miss this opportunity!
Breg-ometer:
Next 7 Days: Volatile ups and downs
Next 30 Days: Large swings in rates with emphasis of an increase
Next 90 Days: Rate increase
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30339]