Rates Remain Low; Mortgage Backed Securities End March 31st
Rates Remain Low; Mortgage Backed Securites End March 31st
March 22, 2010 - Mortgage rates continue to remain in a narrow range as . It is becoming more apparent that the current economic recovery continues to be relatively slow at least for the time being.
The February Producer Price Index surprised many economists by falling 0.6% declining more steeply than originally thought. The Labor Department stated that last month's drop was the largest fall in quite some time. During last week's FOMC meeting, the Fed stated that while they have seen some progress in the economy, they still have no intention of raising rates. With rates continuing to stay low for an "extended period", home buyers will still get a chance to lock in low mortgages for at least several more months.
This week could be more of the same for mortgage rates. While many have pointed out that the Fed continues to have many tools available to influence rates, its campaign of buying mortgage-backed securities will come to an end on March 31st likely with little fanfare or effect on the mortgage rates. Market watchers will be looking for a gradual increase in the number of private sector MBS buyers to support mortgage rates in the coming months.