Bay Area Refinance and Mortgage Weekly News Report:

Fed’s MBS shopping spree:  $23.4B in week ending 1/14 – emphasis on 4.5%’s.  The Fed promised a weekly recap of what they’re buying and here it is. The government purchased $23,405 million in Fannie ($5.6B), Freddie ($15.8B), and Ginnie($2.0B) securities.  The 30-year coupon breakdown is $5.5B in 4.0%’s, $9.8B in 4.5%’s, $3.3B in 5.0%’s, $0.75B in 5.5%’s, $1.25B in 6.0%’s.  The Fed also purchased $2.6B in 15-year securities at 4.0%, and a smattering of 20-year, 40-year and other programs at 5%.

We’ll compare the data next week to see if there is any trend in their buying patterns.  Nothing like a little good data, eh?

So what does this mean to the Refinance and purchase market? Rates should be trending down hopefully next week. This week started off good but saw interest rates erode Friday. Average rates this week on Conforming loans was 4.875% with points and 5.250% with no points.

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