3 November 2009 ? Bonds opened down 19bps and have somewhat recovered to a current afternoon change of down 12bps. Wednesday marks the Fed?s two-day Federal Open Market Committee meeting. Many speculate that the Fed will leave rates at their current levels, but the meetings may indicate when the Fed plans on beginning the inevitable hiking of rates. As the Fed reduces its buying of Mortgage Backed Securities throughout the program?s remaining 22 weeks, we expect the rates to begin their rise. Of the $1.25 trillion established, nearly $977 billion have been purchased. The stock market has remained flat throughout the day with the Dow, Nasdaq and S&P 500 occasionally moving back and forth between the green and red. The highlight of the day was the acquisition of railroad operator Burlington Northern Santa Fe Corp for $26 billion by renowned financier Warren Buffet and his Berkshire Hathaway company. With the impending Fed meetings, the dollar has risen modestly as investors continue to sell risky stocks and assets. It will be interesting to see how the market performs the rest of the week as many companies continue to report 3Q results. Traditionally, November has been a strong month for investors as the holiday seasons are around the bend. Mortgage Rates do remain strong with 4.75% (4.83 apr) on the 30 year and 4.375% (4.423 apr) on the 15 year.Email This Post To a Friend.
Today’s Mortgage Rates Remain Strong at 4.75%
November 3, 2009
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