Mortgage Rates January 14, 2009

The day started off on a bright note when i received an email from AmeriDream stating
“A bill to reinstate reformed downpayment assistance will be introduced as early as tomorrow. The bill is expected to be introduced by Congressman Al Green (TX) with bipartisan support. The bill will have the same language as unanimously passed last year by the House Financial Services Committee. “

Another day with minor movement in mortgage rates (Real Time Rates).  It feels as though this week has been the calm before the storm;  given the daily volatility we have experienced in the mortgage market, since last months FED announcement.

The DOW is on track to make history as the worst two week start ever. With earnings season underway we could see the decline continue.

On a positive note mortgage refinance applications have increased with the record low rates pulling borrowers of the fence, according to the Mortgage Bankers Association.

The FED confirmed today economic activity continues to weaken with the release of the Beige Book.  Tomorrow (1/15/2009) the FED will release the numbers on its MBS purchasing activity, which I forecast will be much lower this week vs. last week, due to the lethargic activity in rates.  Friday’s CPI could bring a storm of reduced rates if numbers are worse than anticipated.

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