Current Mortgage Rates for Friday, September 21, 2012
So we’ve continued to see improvement in mortgage rates following the Federal Reserve’s announcement of an additional round of quantitative easing (QE3) last week. The open-ended program will have the Fed buying $40b worth of mortgage backed securities per month until things improve to the point where the central bank feels comfortable taking its foot off the throttle (the details of what would end QE3 were a little hazy). In addition, Operation Twist will have the Fed replacing short duration bonds with long duration bonds ($45b per month) through the end of the year in an additional effort to drive down long term borrowing rates.
Frankly, there’s not a whole lot else to talk about today. For the past couple days I’ve discussed the factors that could dampen or cancel out the impact of the Fed’s actions (Europe, oil prices, the middle east, etc.) so there’s not much reason to belabor the point here except to say that there is no guarantee that the Fed’s action will work, and lower mortgage rates, while likely, are not guaranteed.
There is no economic news to speak of, and it’ll probably be a light volume day for the markets with trading desks only partially manned so everyone can camp out for the next iPhone (j/k). In any case, barring the unexpected, I don’t think we’re going to see much in the way of rate movement today. Next week, on the other hand, is jam-packed full of data, including a bunch of housing data, GDP, and durable goods orders among others. Non-farm payrolls follows the week after, so I think we will have a lot to digest next week.
Have a great weekend, we will be back on Monday.
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