Interest Rate Trampoline

BarrysBlog_FBInterest Rates
A lot of you want to know what in the H-E- double hockey sticks is going on with interest rates. In a nutshell, financial reports come out every single morning (unemployment, consumer confidence, new home sales, Lana spending (this tracks how much my wife spends each day), etc. When these reports are good for the economy, they are bad for rates. When they are bad reports for the economy, rates go down. In the last week it seems that every report that comes out beats the estimate (in a positive way) that the economists had predicted. The Fed is trying to fight the improving market and keep interest rates low. To do this the Fed is going to buyback treasury and mortgage securities today, and purchase treasury notes on Thursday. This will (knock on wood) help bring rates back down, but I don’t know if this will bring them back down under 5% again. The effectiveness of the Fed’s buyback program has been with mixed results. It has helped keep rates low, but they are higher now than when the program began in March. And it’s only taken $480 billion to get here!

More on Rates
Here’s a well written article (and it even has a quote from Ken Perlmutter (the Prez of PERL Mortgage). Click HERE.

Trivia
Congrats to everyone who guessed Todd “whachu talkin’ ’bout, Willis” Bridges last week. See me for your prize next time I am in the office. This week I am offering a mystery prize valued at over $6.00. and you will NOT want to miss out on it. How do you get it? Simply email me the answer to this question: Who Am I: “Tomorrow I turn 34 years old. My dad and I have both won Academy Awards, but we don’t talk so who really cares. The only family member I like is my brother who I shared a long kiss with on TV. Maybe he’d be a better husband than my first two husbands – I divorced them both and have no plans to marry my boyfriend now because we both think marriage is the pits.

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