Mortgage Rate Update – Week of June 8, 2009
posted in Mortgages, Smyrna Vinings Real Estate |Welcome back!
The week in review:
Recession or no recession? Is the economy improving or just getting worse at a slower pace? I say it frequently in my interest rate updates – good economic news generally means there will be a rise in rates. Last week we learned that there were much fewer jobs lost than anticipated and signs are indicating that the economy is close to making a recovery. As a result, home loan rates went up about .375% on the week.
What to expect:
We’ve experienced a large rate increase over the past two weeks and we are unfortunately still stuck in the upward trend. The Fed is in a tough position at the moment. What impact will the sudden increase in rates have? The Treasury will be selling a large quantity of bonds again this week to support Government run programs. Will the Fed be able to do anything to help bring rates back down? Many believe the Fed’s ability to drive rates back down will be limited.
Breg-ometer:
Next 7 days: Large market fluctuations with rates still on the increase
Next 30 days: Could and should see rates improve; but not to where we were before
Next 90 days: Recession or no recession? The more signs pointing to economic stability, the more likely rates to climb
Courtesy of:
Bob Bregitzer
[where: 30080]
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