Mortgage rates held tight last week, on the average moving slightly higher. The Fed is considering when they should discontinue current support programs, which of course keeps us us all guessing. At its next meeting, the Fed plans to discuss flexing its programs to a month-to-month basis. This could push mortgage rates a bit higher, as it will create uncertainty for the volume of future Fed purchases of Treasuries and Mortgage-Backed Securities.
Fed Chairman Bernanke has his semi-annual live Congressional report this week and if he touts a stronger economy, we can look for Mortgage rates to move upward. Also, the 4th quarter GDP second estimate is expected and if revised downward, Mortgage rates could slip down a bit.
What does all this mean for Mortgage Rates and your financial future?
Mortgage interest rates are still lower that when long-term mortgages were introduced in 1950!
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