We have been counseling people now through this rate madness stating the following, “We expect rates to stay fairly constant for some time due to the economy. They will fluctuate up and down, but mostly average the same. Although we believe there is more pressure for rates to go down, we do not see that happening unless the government steps in and does something drastic to force them down.”
Well, that is exactly what they did today. The Feds announced this afternoon that they will purchase 1.1 Trillion worth of securities to help stimulate the economy. This should, in all likelihood, drive rates down a fair amount. Although we have not seen the full effects of that yet, we will continue to monitor the overall affects constantly. If you have any questions about rates do not hesitate to call us at 830-9685.