The rates remained unchanged for the week ending at 4.625% with 2 points and 5.125% with 0 points. The market was volitile all week with stocks gaining during the week and gave it all back on Friday. Rates are influenced as stocks gain in value, money is taken out of Bonds and rates increase and when the stocks lose, money goes back into the Bond market and rates decrease.
There are 2 events that will have an impact on rates this week, the Fed Meeting and Monetary Policy Statement on Wednesday and The Jobs Report on Friday. Both reports will have major implications and will set the tone for the direction of interest rates.
Finally, Congress continue to discuss the $8000 Tax Credit and right now it looks favorable for an extension and possible expansion. It still needs final vote in the House and approval could be decided this week.
~Submitted by Kevin Luddy, President, Constitution Mortgage