Monday Mortgage Update
June 23rd, 2008 - Categories: Financing
By: Steve Russell
Mortgage Professional
http://www.themortgageman.wordpress.com
This week’s financial forecast is uncertain. The FOMC, the Federal Open Market Committee also known as “The FED”, meets this week for 2 days beginning tomorrow and concluding with their economic recommendations to be released at 2:15 ET on Wednesday. The markets are expecting the FED to stop its rate decreases amidst increasing inflationary pressures and the weak dollar.
The interesting and uncomfortable position policy makers are in (firmly lodged between a rock and a hard place) requires them to choose between loosening rates to try and stimulate economic activity, and tightening rates to help increase the value of the dollar and therefore decreasing the overall cost of oil (since the price of oil on the open market is based on the US Dollar).
Most analysts are expecting the FED to hold the course with no rate increase or decrease, and I tend to agree with them. With no other significant economic reports due out in the next few days, I don’t expect mortgage bond traders to get too aggressive buying or selling. I would expect the mortgage rates to remain relatively flat, at least until the results of the meeting after lunch on Wednesday. Enjoy your week, and check back for the economic news that affects you in the real estate industry.
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Steve Russell is a Mortgage Banker with Primary Residential Mortgage. Contact Steve with mortgage related questions at 888-257-8383, or visit his website at themortgageman.wordpress.com
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This entry was posted on Monday, June 23rd, 2008 at 1:59 pm and is filed under Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
