November 11th Market Update

Good Morning,

I was able to watch the Vikings/Packers game from an unusual spot this weekend, the hospital. A small kitchen accident resulted in a few stitches to my hand. Luckily, they had a TV in the room to keep me occupied. As a Vikings fan, I am glad that they got the win but I still would have no problems taking on Aaron Rogers for our Quarterback either. Favre is a good Q but boy does he come with a lot of drama and media circus people.

So on to the market. We have been seeing rates creep up slightly over the past week. We fully expect to see this trend continue and here is why: The Federal Reserve’s Mortgage Backed Security Program has spent almost $980 Billion of the approved $1.25 Trillion. What this means is that the Fed won’t be able to keep the false levels of interest rates we have seen for the past six months constant much longer. They have been purchasing excess supply to keep prices stable for quite some time and as they get to the bottom of their fund, rates will undoubtedly rise. The only real question what levels they will rise too.

That’s all for now,

Have a good week.

-Matt

30 year fixed: 5.000%

15 year fixed: 4.375%