The week in review:
The Fed continues their purchase of Mortgage Backed Securities and home loan rates are the beneficiary. Interest rates during the week remained at the lowest level we have seen since April of this year.
What to expect:
Home loan rates are low but it won’t last forever. The purchase program is scheduled to last to the end of the year but could end sooner. Once it does, home loan rates will assuredly rise.
This week there are plenty of scheduled reports which could cause a change in the market. We get a look at the Retail Sales Report and two reports on inflation on Tuesday. Later in the week, we get a read on housing starts, manufacturing and initial jobless claims. Strong or improving economic news normally causes home loan rates to rise.
Breg-ometer:
Next 7 days: Rates have been at low levels; an increase would be likely
Next 30 days: Remaining in the same basic range
Next 90 days: Rates are likely to rise toward the end of the year
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]