Mortgage Rate Update – Week of October 13, 2008

Chicken Little, the sky isn’t falling…it only feels that way. The financial markets around the world plunged last week despite government intervention. After announcing they would purchase commercial paper, the Fed dropped the short-term Fed Funds Rate by .50%. However, uncertainty and fear filled the marketplace and the markets spiraled downwards.

Home loan rates went up about .50% higher than where they started!

What to expect:

Expect more volatility. We are seeing and will continue to see daily market movements that once took weeks. We will certainly see the government take additional steps and we should see some interesting headlines. We also have an active week with scheduled economic reports.

Trying to accurately pick the direction of home loan rates this week is honestly a bit futile. So, I’ll leave you with an opinion. Home loan rate should recover from last week if we can get confidence back in the market. We are in a slow economic period and that should bring rates back down. The question is “when”.

Breg-ometer:

Next 7 days: All over the place
Next 30 – 90 days: Conditions are right for rates to come down from this level

Courtesy of:
Bob Bregitzer

[tags]Roswell Mortgages, Atlanta Mortgages[/tags]

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