New Orleans Real Estate – Lower Interest Rates?

This short article below was forwarded to me by Bobbi Schee with Gulfcoast Bank in Mandeville, LA. I thought this was a useful snippet of information regarding mortgage interest rates. If you would like to to contact Bobbi Schee to get more information, her contact info can be found at the end of this post. Enjoy!!

Mortgage bond prices rose this week pushing mortgage interest rates lower.  Rates initially spiked higher following higher than expected producer price index figures.  Fortunately the consumer price index showed tame inflation on the consumer level and mortgage bonds were able to recover.

The Fed kept rates unchanged, indicated they would try to keep rates low for some time, but also warned that long term security purchases would cease at the end of the first quarter of 2010, which could cause rates to increase.  The Fed’s challenge will be stepping out of the mortgage market without causing mortgage interest rates to spike uncontrollably higher.  The housing sector is a vital component of the economy.  The last thing the Fed needs is for mortgage interest rates to escalate causing the housing sector to suffer.  While the most recent data shows positive housing trends across most of the nation, analysts attribute the positive movements to artificially low mortgage interest rates tied to the Fed buying of mortgage bonds.  How this will all play out is still very uncertain.

Now is a great time to take advantage of rates at these historically favorable levels.

For the coming week, the most important release will be Wednesday, the inflation index.  Recent reports were mixed – The PCE price index will be carefully watched for any signs of inflationary pressures.

The bond market will close early Thursday in advance of the Christmas holiday Friday.  The shortened trading week may result in some market volatility coupled with thin trading conditions likely.

BOBBI HENDERSON SCHEE, ASSISTANT VICE PRESIDENT
GULF COAST BANK AND TRUST – MORTGAGE LENDER
504 258 3915 – Cell
bobbischee@gulfbank.com

This New Orleans Real Estate blog post brought to you by Chad Janusa, Realtor at Avalar Realty Louisiana. Please visit my New Orleans Real Estate Website.

To search for properties in the New Orleans area, visit the New Orleans area Property Search.

For all of your Real Estate needs, Chad can be easily reached via text or phone at (504)-376-4233 or via e-mail at chad.janusa@gmail.com

Metairie, LA, USA – Agent licensed in Louisiana – Each office independently owned and operated