Rate Watch update – 6/25/10

Happy Friday, June 25, 2010

Last night the Financial Reform Bill was reconciled between House and Senate. This is a far reaching bill with changes affecting just about every sector of the financial industry, including real estate and mortgage lending, and has been the subject of a lot of debate. The next step is vote by House and Senate, then to President for signature, we’ll keep you posted.

The Fed finished their 2-day meeting on Wed, and as expected left the Fed Funds Rate unchanged at 0.25%. A rate increase just isn’t justified until the economy shows some definitive signs of a sustained recovery.

Today 1^st Quarter 2010 Final GDP number was revised downward to 2.7% from the initial measure of 3.0%. This supports the Fed’s comments about the recovery, and has helped mortgage bonds and rates again today. 30-year fixed conforming have dipped and held near 4.75% for most of the week.

Have a great weekend, let me know how I can help you or someone you know with any real estate financing.

Mike