Tuesday, April 26, 2011
Weekly Mortgage Forecast for April 25th-29th
This is very busy week in the interest rate world.
The Federal Reserve begins it “two day open market committee meeting” on April 26th with a decision on interest rate policy being released on Wednesday, April 27th. While the Securities were able to rise up above a level of resistance last week (which did see a nice small increase in pricing and a decrease in rates) this two day meeting is vitally important to the rate forecast. The decision will be released on Wednesday at 12:15 and for the first time ever, Chairman Ben Bernanke will be holding a press conference at 2:15 to discuss the outlook going forward as it pertains to inflation and the US Dollar. The comments from these meetings and Chairman Bernanke are going to be market movers.
At this time we are uncertain which way it is going to go.
Thankfully, the Mortgage Backed Securities came up above the level of resistance - which is now the floor of support. Barring anything extraordinary, as far as comments from Bernanke, I see this week being stable. We may possibly have an increase in pricing which equates to a decrease in rates. Hopefully we can get back to the 4.5% level we have seen recently.
We will send out a midweek update - depending on the outcome of Wednesday’s meetings.
Thank you for your follow.
Director of Secondary Marketing
Advantage Loans, Inc.