Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – March 22, 2010

The Big Room At Sierra Nevada Brewing Company

YOU DON’T WANT TO MISS THIS EVENT!!!

Scott St. John will be speaking at The Big Room At Sierra NevadaThe , Friday, March 26, 2010.  Scott is a 3rd-Term Governing Board Member of Freddie Mac.  You’ll have an opportunity to inquire into expected economic future of the United States, Real Estate and its REO future, and what’s happening behind the scenes that is making closing loans to more timely and difficult, these days.   REGISTER AT THE CHICO OR PARADISE BOARD OFFICES.  $10 includes appetizers.  $15.00 AT THE DOOR!

Rates Are Still Smokin'

Happy Spring!

Spring is in the air, and that what mortgage-backed securities have managed to do, this morning; spring off the 50-Day Moving Average and remain, so far, just above the 25-Day and 40-Day Moving Averages.  This has managed to help interest rates move slightly down.

$1.25 Trillion

So, over the course of the next two weeks, there are only $14 Billion left in the arsenal of funds that the Fed had set aside to purchase Mortgage-Backed Securities.  Also, this week, alone, the Fed is auctioning $44 Billion of 2-Year Notes, $42 Billion of 5-Year Notes, and $32 Billion of 7-Year Notes, to help pay for the ever expanding deficit.

A Difference of Opinion

Some say that rates will spike severely, after the Fed’s $1.25 Trillion is used up.  Others say it will not have too much of an effect, as there is an adequate amount of cash, on the sidelines, to sort of, pick up the pieces.  I believe that the average rate will be effected by approximately .25% in rate.  Without a major buyer, in the market, I feel like there has to be a negative result.

Short For Time Periods...May As Well Lock

Locking Advice

Again, I advise that if you’re looking at a long escrow, take advantage of the fact that you don’t have to lock.  If you’re in a shorter one…than now is about as good as it gets!

What To Subscribe To:

Get Our Twitter Updates
Get Our Blog Blast
Connect With Us On Facebook

This entry was posted on Monday, March 22nd, 2010 at 9:23 am and is filed under Chico Home Loans, Home Buying, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Name (required)

Email (will not be published) (required)

Website