Summary of Last Week
Mortgage Rates started the week (Monday thru Wednesday) at extremely low levels as fears over both Wall Street's uncertainty in the market and the future of the Eurozone. On Thursday and Friday, rates edged up slightly as as a majority of Euro participants reached an agreeement on budget planning.
Mortgage Rates in Illinois ended the week hovering around 4% (4.06APR) with excellent credit (750+) and equity (20%) position.
This Week
This week we can explect more volatility for rates pending the results of the Federal Open Market Committee's Meeting Tuesday. This will be the last FOMC Meedting of the year and when the Fed meets, volatile mortgage rates usually follow.
Analysts expect the FOMC to keep the Fed Funds Rate unchanged again in order to stimulate growth and not tighten the money supply. It won't be what the Fed does Tuesday, but how they say it.
If the Fed suggests the economy is recovering, mortgage rates are likely to rise after the meeting. If the Fed suggests the growth of the economy has slowed, mortgage rates should fall.
More importantly expected from the meeting is the potential for future Fed Economic Stimulus. If the Fed changes existing programs to increase the money supply, mortgage rates can shift.
Other Releases
Tuesday (12/13): Retail Sales
Thursday (12/15): Producer Price Index
Friday (12/16): Consumer Price Index
Make it a great week!
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