Danny Salas

Archive for November 2nd, 2009

Chico, CA Interest Rates Market Report – Economic Influences – November 2, 2009

Friday Was A Good Lock Day

One Year Extension of Loan Limits

The House and Senate approved an extension of the Federally backed FHA, Fannie Mae & Freddie Mac Loan Limits.  This is huge, and helps the secondary market purchase more loans to help home buyers qualify for lower interest rates.  The only concern will be the market’s liquidity.  Also expected this week is a vote on the $8,000 Tax Credit, or a rendition of that credit.

FOMC Meeting

The Federal Open Market Committee meets this week.  Expect potential market moving statements to be provided on Wednesday, by the Monetary Policy Statement that Good ‘Ole Ben Bernanke will report.  What The Fed says regarding the economy and when they may need to increase overnight interest rates, to stave off inflation, will be watched quite closely by the markets.

Jobs Numbers

Friday will also be an interesting day, when the unemployment figures are released.  Many experts expect the unemployment rate to move below 10%.  It will be interesting to see, as the true unemployment numbers are higher than this.  Also, with the government extension of unemployment benefits these numbers could skyrocket.  Keep posted…

Pending Home Sales Increase

The $8,000 Tax Credit probably helped these numbers increase 6.1%.  Things to keep in mind, even if the extension of the Tax Credit occurs, the Mortgage Backed Security Purchase Program is ending soon.  This will push interest rates up, unquestionably.  Therefore, any buyers sitting on the fence, should move now.  It won’t get much better than this.

Related Must Reads

March of 2008, When Loan Limits Increased
The Senate Version of the Tax Credit Extension
Unemployment Benefits Ignored

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