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Now Up Ben Bernanke, Bernanke - 03/15
Posted 03-15-2010 at 10:58 AM by dlenski
Now Up Ben Bernanke, Bernanke
3/15/10 Mortgage Backed Securities are minus 6bp this morning. All eyes will be on the Fed's meeting that starts on Tuesday. The minutes of that meeting will be released on Wednesday at 1:15. The latest batch of economic news is what analyst expected. There seems to be less doom and gloom in the markets. The same can not be said for the labor market as we have not seen any improvement in the unemployment rates. The Fed does not take unemployment into consideration when making its rate decisions. That means the Fed will have to start warning about future plans to move rates higher to protect against inflation. That will be an interest rate mover. Any hint of a change in language and March Madness may start Wednesday.
I have listed the average monthly rate for the 30 year fixed rate mortgage for the last 6 years. You will see that rates typically move up between .375% and .50% from January to June. We have not seen much movement from rates so far this year. You can check our past commentary and see that our first quarter projection was for rates to stay between 4.875% and 5.375%. We have actually been at the low end of that range. We feel the rest of this quarter we could be at the higher end of that range. Next quarter we think rates are going to push past 5.375%.
The average rate for January was 5.03%. History tells us that the rate in June should be .375% to .50% higher or 5.40% to 5.53%. There is more upward pressure on rates than downward. You may not have to lock today, but you should soon.
In 2009 Jan 5.05 June 5.42 2008 Jan 5.76 June 6.32 2007 Jan 6.22 June 6.66 2006 Jan 6.15 June 6.68 2005 5.71 June 5.58 2004 Jan 5.71 June 6.29
Here is a list of news being released this week: CPI and the Philly Fed index will be released on Thursday. The Fed also starts their 2 day meeting Tuesday.
A 35bp move usually represents a change in interest rates of .125% in either direction. Rates typically move up twice as fast as they move down.
www.mortgageserviceswi.com
3/15/10 Mortgage Backed Securities are minus 6bp this morning. All eyes will be on the Fed's meeting that starts on Tuesday. The minutes of that meeting will be released on Wednesday at 1:15. The latest batch of economic news is what analyst expected. There seems to be less doom and gloom in the markets. The same can not be said for the labor market as we have not seen any improvement in the unemployment rates. The Fed does not take unemployment into consideration when making its rate decisions. That means the Fed will have to start warning about future plans to move rates higher to protect against inflation. That will be an interest rate mover. Any hint of a change in language and March Madness may start Wednesday.
I have listed the average monthly rate for the 30 year fixed rate mortgage for the last 6 years. You will see that rates typically move up between .375% and .50% from January to June. We have not seen much movement from rates so far this year. You can check our past commentary and see that our first quarter projection was for rates to stay between 4.875% and 5.375%. We have actually been at the low end of that range. We feel the rest of this quarter we could be at the higher end of that range. Next quarter we think rates are going to push past 5.375%.
The average rate for January was 5.03%. History tells us that the rate in June should be .375% to .50% higher or 5.40% to 5.53%. There is more upward pressure on rates than downward. You may not have to lock today, but you should soon.
In 2009 Jan 5.05 June 5.42 2008 Jan 5.76 June 6.32 2007 Jan 6.22 June 6.66 2006 Jan 6.15 June 6.68 2005 5.71 June 5.58 2004 Jan 5.71 June 6.29
Here is a list of news being released this week: CPI and the Philly Fed index will be released on Thursday. The Fed also starts their 2 day meeting Tuesday.
A 35bp move usually represents a change in interest rates of .125% in either direction. Rates typically move up twice as fast as they move down.
www.mortgageserviceswi.com
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