The week in review:
Home loan rates reached the lowest level of the last five years this week. Uncertainty about the auto industry, retail sales and job security made their impact this week. On the week, home loan rates came down about .125%.
What to expect:
The Fed meets on Tuesday and you can expect them to cut the Fed Funds rate by .50%. Remember, this is the overnight rate between banks and not a reduction of long-term rates. It will be interesting to see what the Fed says about the current economic situation as part of their announcement. Sometimes they will give hints about future actions during their announcement.
Long-term home loan rates, such as the 30 year fixed, are at historic low and these levels have been reached quickly. It would not be surprising to see rates temporarily move back upward after such a large drop.
Breg-ometer:
Next 7 days: Depends on Fed – we could see a pull-back on rates
Next 30 to 90 days: Governmental action will play a big role – lower rates are possible
Courtesy of:
Bob Bregitzer
[tags]Smyrna Mortgages, Vinings Mortgages, Atlanta Mortgages[/tags]