Market Update (2/9/2010)

Over the next month, you are going to start to hear more and more talk about the Fed’s mortgage backed security purchase program. In fact, Fed Chairman Ben Bernanke is scheduled to speak tomorrow to members of the House Financial Services Committee about the Fed’s plan to end this program on March 31st. Nobody knows for sure what this will mean for mortgage interest rates. I have heard experts say the impact will be anywhere from 0.5% to 1%. The one thing that I do not hear any experts say is that rates will stay the same or go down as we approach this date.