Chicago Federal Reserve President Charles Evans believes that QE3 will work better to help the economy than QE2 because it is targeting the housing market. This will make it more attractive to refinance which will leave people with more money in their savings and more likely to purchase durable goods with that extra money. Evans believes the Fed should keep the bond buying policy until the unemployment rate falls below 7%.
Mortgage rates moved slightly higher at the end of last week for the first time since the Fed announced QE3. Today we see rates have edged back down. Currently the 30 year fixed rate is at 3.40% and the 15 year fixed rates is at 2.73%.
This week is the release of the anticipated employment report, which will be out on Friday. The private payroll report from ADP will be released on Wednesday. Weekly jobless claims as well as the FOMC minutes will be released on Thursday.
Senior Loan Officer
1st Advantage Mortgage, a Draper and Kramer company