Rate Update February 27, 2009
Fixed Mortgage Rates are even with yesterday.
The Fed purchased $25 Billion of Mortgage backed securities this past week bringing the total amount to $160 Billion (of the $500 Billion planned). As you can see, these purchases alone can’t force mortgage rates to decrease…although they have helped keep some demand in the market that wouldn’t have otherwise been there. This will hopefully continue to keep mortgage rates in a nice low range for the months to come.
With Mortgage Backed Bonds still slightly above a floor of support, we will continue to keep a floating position on rates.
Current Outlook: Cautiously Floating