After hitting all time lows in July, interest rates on government-backed mortgages began moving up again for most of August. But we have seen a reversal in that upward trend in the last week or so. Mortgage interest rates have improved again for several straight days. Whether mortgage interest rates continue to test all time lows heading in to the fall is in large part dependent on the Fed announcements coming out later this week. Most pundits believe that if the Fed announces it will launch another round of quantitative easing, or “QE3”, that will be worse for mortgage interest rates than it will be if the Fed remains non-committal on the subject. We will be closely monitoring the situation and reporting new developments here.
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