The week in review:
Home loan rates increased by approximately .25% last week. Several members of the Fed publicly said that inflation could increase once the economy recovers. Although there appears to be no inflation at the current time, fears of increasing inflation can cause home loan rates to rise.
What to expect:
The big event of the week will be the scheduled Fed meeting on Tuesday and Wednesday. Remember, the Fed dropped the Fed Funds Rate to a range of 0% to .25%. This is the lowest range ever. So, don’t expect a rate cut. However, the world will be listening to what they have to say about the economy, future inflation issues and their plans about purchasing mortgage obligations.
Breg-ometer:
Next 7 days: Fed announcement could move rates either way
Next 30 days: Potential for lower rates
Next 90 days: Potential for lower rates
Courtesy of:
Bob Bregitzer