The Week in Review:
Home mortgage rates ended the week a bit lower than they started off. This is good news for prospective home buyers, but will it be a temporary improvement in a rising interest rate environment?
What to Expect:
IT’S ALL ABOUT THE FED! There are a number of important economic reports set to be released this week; however, there is really no need to mention them. The Fed’s FOMC meeting and policy statement on Wednesday is the all-important event of the week.
Will the Fed begin to taper the stimulus program? Political and economic pundits are all over the news this week with widely varying projections. This is one of the most anticipated meetings in some time.
If the Fed announces a reduction in asset purchases, expect rates to move higher (and I mean the potential for a swift .25% rate increase in a couple of hours). If they leave the purchase plan in place, then it is certainly not a given that home loan rates move lower. The markets will have to digest the message Fed Chairman Bernanke conveys.
For transactions closing in:
Next 15 Days: Lock
Next 30+ Days: Lock. The risk is too high to float.
Courtesy of:
Bob Bregitzer
Southeast Mortgage
Click here to start your Smyrna Vinings home search.
[where: 30339]