There are only 2 months left to go (i.e., February and March) in the Fed’s program to purchase $1.25 trillion of the mortgage backed securities. The program originally started with Fed purchases in March 2009 will stop by the end of next month.  Eric Rosengren, the president of the Federal Reserve Bank of Boston, predicted last month that mortgage interest rates will rise by as much as 0.75% when the purchase program ends.  (source: Federal Reserve)

·Fannie Mae Mortgage backed securities are down 28 basis points on the day, leading towards higher interest rates for today and tomorrow

·15 year fixed interest rates are now as low as 4.500% with -0- points, while 20 and 30 year fixed interest rates are as low as 5.000% and 5.125% respectively.

·5/1 and 7/1 ARM rates are still very attractive and are now as low as 4.000% with -0- points and 4.375% with -0- points respectively.

·Interest rates for jumbo loan programs remain very attractive at 4.000% for a 5/1 ARM, 4.375% for a 7/1 ARM, and 5.250% for a 10/1
 ARM, all with -0- points.