Mortgage Rate Update

June 3, 2013 Posted by Andre Hemmersbach

I thought it would be timely to send you a financial chart that quickly shows you how much rates have moved over the last 4 weeks. The move has been pretty dramatic and started with some good job numbers in the begging of May.  The real catalyst however has been Fed Chairman Ben Bernanke’s comments regarding the Federal Reserve’s continued commitment to purchase Mortgage Backed Securities (MBS) in the wake of the stronger economic outlook. Low Mortgage Rates have been artificially supported by the Federal Reserve through heavy purchasing programs which have now come into question. The chart below shows bond prices, which are inverse of rates (red days means higher rates, green days means lower rates).

Please call me if you need further explanation of the current rate environment or need an update on how this affects your specific qualifications or payment amounts. 

MBS Chart

MBS Chart

About Andre Hemmersbach

Andre Hemmersbach has been working in the mortgage banking business for over 30 year helping people successfully finance their real estate holdings. He can be reached at (310) 540-1330 #137.

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