MARKET COMMENTARY
Mortgage Rates have moved only slightly this week over last week. The relevant news this week focused on changes suggested by the Mortgage Bankers Association to FNMA and Freddie Mac and to the possibility that the Treasury will significantly reduce buying securities that effectively have been holding down mortgage interest rates. This past week they bought $26 billion in such securities. Both the suggestions from the MBA and the purchase reduction of mortgage securities by the treasury have long time horizons so the impact on rates now are minimal, but they are issues to keep an eye on.
Today's news about employment is tempered because while the total percentage of unemployment is up more than expected, 9.7%, the additional number of people losing their jobs this month, is again a smaller increase than before so people continue to say things are getting better. Unfortunately, lots of people are staying unemployed for a long period causing them great hardship.
Next week, there are treasury auctions for another $70 billion. The 10 year treasury, the index that most closely tracks mortgage interest rates, will be auctioned on Wednesday. Look for rates to move a bit more that day than the rest of the week.
These are my opinions and don't represent the Southern Arizona Community Bank's. This is for informational purposes only, not investment advice.
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