Market Snapshot

Talk of inflation sparked a selloff of Bonds yesterday that is continuing this morning. If inflation talk continues, it will be hard for mortgage rates to move much lower, despite the Fed’s ongoing plan to purchase Mortgage Backed Securities.

You’ll remember that the Fed increased its purchase plan of Mortgage Backed Securities this week to $1.25 Trillion dollars and extended the plan through 2009. In fact, the New York Fed bought nearly $20 Billion worth of Mortgage Backed Securities in the last week alone.

Currently, market indicators suggest that an erosion of Bond prices may be on the horizon.

“Your Partner In Success!”

Tony Frerking
Sr. Mortgage Consultant
PMZ Home Loans
1600 N. Carpenter Rd. Ste. C
Modesto, CA 95351
Direct: (209) 404-2200
Fax: (209) 254-7142