The U.S. Federal Reserve begins its two-day meeting as board members will discuss the continuation of stimulus measures. The Federal Open Market Committee (FOMC) will continue with its $40 billion per month purchases of mortgage-backed securities, and likely increase its monthly purchases of Treasuries as Operation Twist is set to expire.
Forgive us for all of that jargon. The point is this – when the Federal Reserve ramps up purchases of Treasuries and mortgage-backed securities, mortgage rates tend to fall. The action puts downward pressure on bond yields, and when the 10-year Treasury yield drops, so does the 30-year fixed.
Again, forgive us for all the jargon. Here is something that we can say clearly: mortgage rates should remain at or near record lows in the lead up to the fiscal cliff.
In November, the U.S. unemployment rate fell to 7.7 percent as payrolls added 146,000 jobs. The rate also dropped in part because 350,000 people left the work force. Construction jobs fell 20,000 during November, which comes as somewhat of a surprise after evidence (such as housing starts) points to increased construction activity.
The latest Keith Byrd market report shows San Luis Obispo County single-family residential homes selling at their fastest pace since 2005. Through the first 11 months of the year, their have been 2,587 total single-family residential home sales. Normal home sales account for 70.6 percent of all activity and short sale activity took up a greater share of the market with 19.4 percent of all sales. For more, please see our article “San Luis Obispo County homes selling at fastest pace since 2005.”
Mortgage rates shot downward on Thursday to the lowest levels of the year. Then on Monday, many of them jumped back to previous levels. For More, see our December 10, 2012 rate update.
Lastly, we would like to notify readers of our latest service – the CCL Mortgage Rate Tracker. Subscribe to this free service to receive the latest mortgage rates to your inbox. The Tracker follows 10 loan programs (including conventional fixed, FHA, USDA, VA, jumbo, and manufactured loans) and sends along mortgage rates for points, par, and rebate options. This is an easy way to follow the latest on mortgage rate movement. Email firstname.lastname@example.org with the text “subscribe” to join the mailing list.