Jobs report came in much better than expected. The unemployment rate dropped for the first time in almost 2 years, form 10.2% down to 10%.Factory orders were stronger than expected.
Do not wait for rates to improve. It isn't going to happen. This is the beginning of what should be a steady increase over a very long time.
As the Employment picture improves & Wall Street rebounds through the end of the year, rates will continue to rise. In my opinion the largest rate increases will begin towards the end of February.That is when the Fed. will have either exhausted their allotted $1.25 Trillion to buy Mortgage Backed Securities(MBS) or will have had to reduce their weekly amounts of purchases low enough to not artificially effect the markets. Last couple of weeks they have bought $16 Billion worth of securities. Most of this past year, they bought around $25 Billion a week.They only have about $200 Billion left.Of course some are calling on the Gov't. to extend this program, but that will be a hard sell for an improving economy. When the Fed. started buying MBS last Dec. mortgage rates dropped a full point in a 30 day period.
If you are in the market for a home mortgage,now is the time. Rates are only going to move up. Just a question of how much, how soon?
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