This week we are in store for two treats; markets will be closed for the 4th to celebrate our Independence and reopen on the 5th to celebrate our dependence on the monthly employment reports. A few weeks ago at the FOMC press conference, reporters questioned Fed Chairman Bernanke hoping to get some bits of info into when the Fed would begin to taper it’s bond purchasing program. Instead of vague hints, big Ben came right out and more or less said SOON! This sent markets into its second tailspin of recent and mortgage rates up. We’ll continue to watch economic reports, like the June employment report on friday, to gauge how quick the Fed will change its current mortgage bond purchasing policy. Expect another jolt to rates as soon as they begin the curtailment and for 30yr rates to test 5%. Until then, hurry up and find that house you have been thinking about buying, lock in your rate in the mid 4’s and be thankful it’s not in the 5 to 6+% range!
Check out the improvements in rates over last Monday, as much as half a percent better in rate. Take advantage before the Fed drops another bomb on the markets and actually begins to slow down their bond purchasing program!
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