Notes From The Mortgage Insider

Dear Friends:

Often in the financial world you find that “bad is good” and “good is bad.” Today’s Federal Reserve report is a perfect example.

As reported by The Wall Street Journal (WSJ.com) the Fed expects the economy to grow between 2.2% and 2.7% this year. That's down from November's forecast of between 2.5% and 2.9%. But it sees unemployment falling as low as 8.2%, an improvement from November's bottom rate of 8.5%.

So the economic news is mixed at best. But there is some good news to report as well.

Federal Reserve officials also said Wednesday that they expect short-term interest rates to stay close to zero “at least through late 2014,” longer than previously indicated, a move that could aid the U.S. economy’s path to recovery.

So it is likely that mortgage interest rates will remain stable in the short-term as well. But I would add a word of caution to those who would benefit right now from refinancing. Don’t wait around. There are lots of global risks that could cause a sudden increase in mortgage rates (think Europe, Iran, among others), and consequently sitting on your hands might not be the best idea right now.

Steven Hofberg, Operations Manager, Residential Mortgage Center Inc

To contact Margie Hofberg email her at margie@rmcenter.com. If you wish to be notified when she posts the weekly Newsletter simply click on the Subscribe button below. To be added to the weekly Newsletter email distribution list email Renee Bourassa at renee@rmcenter.com.