Also an interesting study from Fannie Mae on Renters’ perceptions on owning. 58% see owning as making more sense from a lifestyle preference.
Last week’s Non-Farm Payrolls report pushed mortgage rates to near 15-month highs as 175,000 jobs were added in May. Now the focus shifts to next week’s Federal Reserve Open Market Committee meeting where everyone will be looking for hints about the Fed’s plans for QE3.
QE3, or Quantitative Easing, is the nickname for the Fed’s efforts at stimulating the economy. For nearly a year the Fed has been buying $85 billion worth of bonds and treasuries a month to keep rates low and spur employment, among other objectives.
Whatever comes out of next week’s meeting, or Chairman Bernanke’s comments next Wednesday, they are sure to move the markets.
In the past the Fed has stated they would begin to curtail QE3 once payroll growth was sustained. With Friday’s report, private payroll creation has gone 8 months at 150,000+, which hasn’t happened since 1999.
Bottom Line for Mortgages:
Mortgage rates are moving higher, but remain attractive, making it an ideal time to buy a home.