Interest Rate Factors for February 5th - 9th

At last week's monetary policy meeting (January 30th & 31st), the Federal Open Market Committee (FOMC) again left the Fed Funds rate unchanged at 5.25%. The FED remains comfortable with their current policy stance. The Board of Governors seemed less concerned about inflation and economic growth risks. This position should stabilize Adjustable Rate Mortgages (ARMs) for the next 30 - 45 days, leading into the next FOMC meeting on March 20th & 21st.

Unemployment was up last week to 4.6%!  Strangely good news for the economy (economic growth is moderating) but bad news for the unemployed.

This week also the U.S. Treasury will be holding Bond auctions.  Wednesday, February 7th for 10-Year Notes and Thursday, February 8th for 30-year Bonds.  Higher Demand/Bond Prices result in lower bond yields and therefore lower long-term interest rates.  These will be important indicators for 30-year fixed rate loans.