/ PRBuzz / May 2, 2011 - -  This week Federal Reserve chairman Ben Bernanke used his historic first conference to warn that the US deficit is "not sustainable" and tell political leaders they must address it "as quickly and effectively as they can".

Samuel Morales, mortgage expert and Texas Loan Officer says,

" Bernanke confirmed that the US will keep interest rates low while continuing its government bond buyback program to keep the recovery on track.  This means that mortgage rates should stay relatively low but will still fluctuate based on the demand for mortgage backed securities on the secondary market and investor demand for the 10-year bond that has been affected by instability in the Middle East and increasing oil prices".

Mortgage rates will go up should things cool down in the Middle East or if demand for mortgage backed securities dries up on the secondary market.

Morales, " Even though rates are low we have not seen the number of mortgage originations increase as recent Federal mandates have impacted the mortgage industry in a negative way".

About Samuel Morales:

He currently holds his National and Texas State Mortgage License at Directions Equity out of San Antonio, Texas.  He has been in the mortgage industry for 9 years and specializes in Government, Jumbo, Super Jumbo and Construct to perm mortgage lending in Texas.

Samuel Morales

Samuel@yourloanofficer4life.com

www.yourloanofficer4life.com

www.mortgageratenotifier.com

www.streamlinefha.net

###        Link to CBS Money Watch http://finance.bnet.com/bnet/news/read?GUID=18332919