Mortgage Rate Update – Week of January 12, 2009
posted in Mortgages |Welcome back!
The week in review:
The past week marked the Fed’s first run at purchasing mortgage debt (called mortgage-backed securities). They previously made several announcements of their intentions, but last week they actually started buying. In fact, they purchased $10.2 billion last week.
The plan for the Fed’s interaction have helped bring home loan rates down over the last month and their buying last week helped rates drop by approximately .125%.
What to expect:
The Fed’s purchase program will continue this week and will be interesting to watch in the weeks and months ahead. There are also several reports out this week that could impact our home loan rates. We will see the Retail Sales Report on Wednesday and expect it to be pretty miserable. We will also see the Consumer Price Index Report on Friday which helps determine which direction inflation is moving. Both reports are expected to be in favor of lower rates.
Breg-ometer:
Next 7 days: We do not expect too much of a change from current levels
Next 30 days: Rates have a chance to be lower with Fed interaction
Next 90 days: How aggressive will the Fed be?
Courtesy of:
Bob Bregitzer
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