The Market in SIMPLE English: September 2009

Eagles,

The Mortgage Bankers Association (MBA) just released its weekly index of home mortgage applications. Last week, this index SURGED 12.8 percent, to its highest level since the week ending on May 22nd.

In the news release from the MBA go on to say, not only were consumers clamoring to refinance their current home loan, applications for new purchases were also robust.

Borrowing costs on a 30-year fixed-rate mortgage, excluding fees, averaged 4.97 percent, down 0.11 percentage point from the previous week. It was the first time since the week ending May 22 that the rate on this most widely used home loan was below 5 percent.

The all-time low for this index of 4.61 percent was set in the week ending March 27.

Interest rates one year ago was at 6.08 percent.

This is all GREAT news for our Fall real estate market. Now is the time to focus in on your business - SALES ARE BEING MADE NOW! I had tremendous reports on up calls and sales activity over last weekend! One Eagle reported to me she has ratified over $1.4 million in sales this past weekend. The Manassas office had eight cold up calls, including both buyer and sellers, over the weekend.

I think we are about to experience a second "Spring Market" this year.

Please let me know how I can help.

Thanks,

Chuck

Eagles,

The Federal Reserve is currently in a scheduled two day Open Market Committee Meeting. This meeting is expected to wrap up with an announcement from the Fed on monetary policies at around 2:15pm today.

There is no expectation that the Fed will announce any change in its target Discount Interest rate, which is currently set at 0 to .25%, but their is an expectation that the Fed will set the stage to begin withdrawing from the many programs they have had to put in place from the financial crisis that hit last September.

While I am not an economist, I do see what typically happens upon the announcement from these Fed meetings, higher mortgage rate, at least for a short term.

When I get the announcement from today's meeting, I will get the word out to you all.

Thanks,

Chuck