Fed Keeping Interest Rates Low

November 4, 2009

Daily Mortgage Updates

A&N Mortgage Logo4 November 2009 ?Bonds opened today 3bps up and have ceded some ground this afternoon. They ended the day down 6bps. After the highly anticipated Federal Open Market Committee meeting, the Fed announced it will keep the Fed Funds Rate low for an extended period of time. Many economists predict the rates will stay close to zero well into 2010, but they also fear that this monetary policy may bring about inflation. With rates still low, mortgage applications have risen 8.2%, the refinance index 14.5%, and the purchase index 1.8% just in the past few weeks. The number of refinances has certainly been fueled by the Fed maintaining low interest rates. As was expected, the stock market was up big today, fueled by commodities (most notably gold), a weaker dollar, and companies who reported 3Q profits. With the Fed?s announcement, expect the market to continue to gain this week and trend upwards, as it traditionally does in the month of November. Mortgage Rates are at 4.875% (4.875% apr) on the 30yr and 4.25% (4.309% apr) on the 15yr.

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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