The Week in Review:
The Fed’s Policy Statement last week was a little more downbeat on the economy, stated there are some deflationary pressures in the market and gave the feeling that additional measures may be taken to help the economy. Most of the Fed’s comments are good news for the bond market and home loan rates. On the week, home loan rates came down about .125%.
What to Expect:
Just when it looked like home loan rates were starting the move upward, we receive some new information from the Fed.
Will the Fed engage in another round of Quantitative Easing (QE)? QE is where the Fed intentionally increases the money supply by purchasing government securities from the market. The initial Mortgage-backed Security Purchase Program helped drive home loan rates down. Many feel an announcement one way or the other will happen at the November meeting.
In the short term, it appears that home loan rates will at least try to beat the low levels hit at the end of August.
Breg-ometer:
Next 7 Days: Slight drop in rates possible
Next 30 to 90 Days: The Fed has some decisions to make and either way it could affect home loan rates which make it hard to predict future rate swings. Rates are near all-time lows. Suffice it to say, you can’t go wrong with home loan rates at these levels, no matter what the 800 pound gorilla of the financial world does.
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30339]