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 The outlook for the U.S. economy improved last week, taking the mortgage bond market with it. For the first time this year, conforming mortgage rates rose throughout Michigan from one week to the next.
Data was strong across all categories last week.
In addition, European leaders moved closer to a final resolution on the Greek sovereign debt default situation.
Overall, the action gave investors reason for optimism in the U.S. economy, and economies abroad. This drew money away from the U.S. mortgage bond market, which caused mortgage rates to rise.
Freddie Mac reports the average 30-year fixed rate mortgage slipping 0.01 percentage points to 3.88% nationwide, with an accompanying 0.8 discount points and complete set of closing costs. These costs are slightly higher as compared to the week prior.
1 discount point is equal to one percent of the borrowed loan size.
Freddie Mac’s weekly mortgage rate survey puts the conforming 30-year fixed rate mortgage under 4 percent for 7 consecutive weeks.
This week, mortgage rates may rise; the week is anchored by a 2-day Federal Open Market Committee meeting. Whenever the FOMC meets, mortgage rates can be volatile.
The Ben Bernanke-led FOMC is not expected to raise the Fed Funds Rate from its current target range near 0.000 percent, but it’s not what the Fed does that can change mortgage rates as much as it is what the Fed says.
After its 2-day meeting concludes Wednesday, the FOMC will issue its customary statement to the markets, to be followed by a press conference led by Chairman Bernanke. Wall Street will watch the press release and conference for clues about the Fed’s next steps and its outlook for the U.S. economy.
If the Fed indicates that the economy is growing, mortgage rates in Lansing are likely to rise. Conversely, if the Fed indicates that the economy is slowing, mortgage rates are likely to fall.
Other factors influencing mortgage rates this week include the President’s annual State of the Union address (Tuesday), the Pending Home Sales Index (Wednesday) and New Homes Sales data for December (Thursday).
Mortgage rates remain low but may not stay that way. If you’re looking for the best rates of the year, this week may be your chance.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents. Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
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