The Labor Department reported today that 263,000 jobs were lost in September. This is much worse than the expectations of 175,000. Unemployment is now at 9.8%...the highest level in 26 years. Analysts are concerned the recession will be much slower to recover from than many previously thought.
All of this has led to lower mortgage rates for the week. These low rates may not stay around for long though. The Fed has recently announced they will be backing out of buying mortgage backed securities in the first quarter of 2010. The Fed purchasing of mortgage backed securities has been one of the biggest forces keeping mortgage rates down at record low levels over the past year. Most analysts agree that when the Fed stops buying mortgages, rates will go up.
Next week the Fed is auctioning off a record level of Treasury notes. Since Treasuries compete for the same investment dollars as mortgage backed securities, this can cause an oversupply in the market, which ultimately can lead to higher mortgage rates.
Now is the time to lock into a great long term interest rate. Don’t miss out!
~ Courtesy of Wendy Charles, LoanCentral LLC, 425.468.9321, WendyC@LoanCentral.com
- Jeanette Eide
- Bellevue, Washington
- I’m a full-time professional Realtor specializing in residential resale and new construction in Seattle, Bellevue, Redmond, Kirkland, Issaquah, Newcastle, Sammamish, Bothell, Mill Creek, Snohomish, Everett, Woodinville, Kent, and Renton. Together with my husband Erik, we have over 17 years experience. We take the time to listen – getting to know you and establishing your exact needs. From there, our sole focus is getting you where you want to be, on time, in the smoothest manner possible. Together with our team of professionals, the closing of your transaction will be handled knowledgeably with the attention to detail you expect and deserve.
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