Good Afternoon,
Holy Crap is it cold, welcome to spring in Minnesota!
Rates are near unchanged from last week after a little bouncing around but are trending a little lower and may dip by .125% in the coming days. The main economic news this week is Cyprus, the tiny island off of Greece is in desperate need of a bailout. As I’ve said before, uncertainty is typically good for keeping interest rates low.
The Federal Reserve will be making their policy statement later today and investors will flock to emotional reactions based on how things are worded. I don’t expect to see any major shifts or changes coming from Ben Bernanke. Most are expecting to see the Federal Funds Rate remain unchanged and the Federal Reserve to express a continuing commitment to spending over $85 Billion per month in bond purchases. I still cannot wrap my head around that number, this is the main reason why I firmly believe that rates are artificially low and only time will tell how long the Federal Reserve will keep interest rates from being market driven.
Have a great week!
Matt
Rates: 30 year fixed at 3.625% (APR 3.763) and the 15 year at 2.875% (APR 2.922), FHA: 3.25% (APR 4.059): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call. These are not quotes, merely a baseline measure to gauge how rates change from week to week.
Matt
Matt Royer
Mortgage Consultant, CMC | Homes Mortgage
NMLS# 366970
612-232-7646 c
651-770-0637 o
651-294-1001 f
www.MattRoyer.com
mroyer@homesmortgage.net
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