Juicy Estates: Mortgage Blog

Miami Mortgage Minute | Financials Tank | Rates Move

“What you need to know about the local and national mortgage market including the most current interest rates and mortgage related news in 60 seconds or less”.

 

NEWS

The Fed has verbally committed to spending about $85 billion a month in the mortgage backed securities market in an effort to keep mortgage rates low.  In their first week of fiddling around in the MBS market the Fed spent 10.2 billion.

The Financial sector in the stock market got beat up with Bank of America and Citigroup sighting huge losses in their quarterly earnings reports.  In addition Bank of America received a second life line from Uncle Sam in the form of a check for $138 billion.  

The Consumer Price Index (CPI) for 2008 was the lowest reported since 1954 indicating that inflation is not something to worry about….yet.

RATES

Conforming interest rates ended the week up by .125%.  Look for the Fed to increase it’s expenditures in the MBS market if conforming interest rates continue to trend up.

Jumbo interest rates remained flat for the week with little indication that significant interest rate movement is on the horizon.  It appears that the “Big Four” (Wells Fargo, Bank of America, Citibank and Chase) are currently keeping jumbos in their portfolios given the lack of appetite for these securities on the secondary market.

This entry was posted on Sunday, January 18th, 2009 at 9:59 pm and is filed under Mortgage News. 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.

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