Mortgage Minutes

The passing of the year and the decade came quietly from the financial news perspective; however, the month of December saw an increase in interest rates of .50%. Moreover, while the start of 2010 has started with an ever so modest improvement, the forecasts for future rates almost certainly indicate movement higher. The Fed will bring their mortgage-backed securities purchasing program to a halt at the end of March and economists are already citing a run up in rates if the program is not extended. Focusing on this week, Friday’s Non Farm Payroll release could spark a quick increase in mortgage rates – while the likelihood of a sharp decrease is unlikely. Employment numbers may be beginning to signal signs of recovery. If this trend continues, the economy will grow and a demand for capital will push interest rates higher. Compounded with the extension and expansion of the tax buyer credit, the time for real estate financing is now.