Here is a snippet from an email I received from a loan officer that I know on 11/3/10 right after the information hit the fan. Take it as you may…

Michael,

The fed kept interest rate the same.  However they unveiled a new stimulus package that will allow for 600 billion in government bonds.  They said they would purchase 75 billion a month into the middle of next year.  This will lower costs for consumers in the short term in order to spur the economy.  Mortgage backed securities are under selling pressure because of the announcement at the moment.  That means higher interest rates.

If you know of anyone who needs to refinance please have them contact me immediately.  These rates won’t be around forever and the further the FED goes into bonds and not MBS’s the higher the rates will go.

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