Mortgage Rate Week Wrap 1/16/2009

Another week for the history books; this week brought us the end of President George W. Bush’s 8 year term, along with more Bailout and negative economic news.  Mortgage rates began a silent uphill hike starting Monday and continued through Friday’s close.

This week we watched the 4.00% FNMA 30 YR give up .4375bp in a slow methodical move with Friday’s CPI number being the capstone.  This loss in price placed lenders in the position to increase rates slowly but surely (see Real Time Rates).  The lack of inflation was the worst reading since 1954, Inflation causes mortgage rates to rise,  its absence therefore, helps to keep mortgage rates low. The FED continued its MBS procurement plan and acquired another $23B this week, bringing the grand total to $33B, only $467B and six months to go.  Then Back to the Future with interest rates.  Oddly enough the FED spent more this week and MBS acted inversely to there plan.  This could just be profit taking, given investors may be getting beat-up by earnings season and would like a little cold hard cash.

Bank of America is now stepping into the bailout ring, subtly admitting the Merrill numbers just don’t look right, Countrywide’s probably wont help out as well. The first of my 2009 predictions coming to fruition.

Fun notable mentions and web gems this week:

My post “New mortgage Guidelines 2009“ received an honorable mention by this week’s 124th RE Carnival hosted by the Austin Real Estate Blog.

CNBC published a web special “Most Popular Cities to Relocate” two of my cites made it #6 and #8.

If you have some time to kill head over to The Bail Out Game.

I also took time out to go see my all time favorite Rappers biopic Notorious, it’s a two thumbs up from Your Mortgage Planner.

For this weeks day-by-day:

Market Forecast Week Of January 12, 2009

Mortgage Rates January 13, 2009

Mortgage Rates January 14, 2009

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1. Bailout » Blog Archive » Mortgage Rate Week Wrap 1/16/2009 | Your Mortgage Planner 2.0 Blog says:

   January 18, 2009 at 6:37 am

   [...] Bank of America is now stepping into the bailout ring, subtly admitting the Merrill numbers just don’t look right, Countrywide’s probably wont help out as well. The first of my 2009 predictions coming to fruition. …[Continue Reading] [...]