The financial world was certain that the Federal Reserve would announce that it will begin tapering the $85 billion per month it is pouring in to the US economy. But the Fed had other plans. The announcement just came out that the Fed will not taper yet. That means we will see a dip in mortgage interest rates for the next little while.
Here is a comment from the Fed’s press release today:
Household spending and business fixed investment advanced, and the housing sector has been strengthening, but mortgage rates have risen further and fiscal policy is restraining economic growth. … the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases. Accordingly, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.
It remains likely that the Fed will decide to begin the tapering process later this year, but for now rates should improve. That means now is the time to get a refinance or home purchase started. Contact us in the sidebar immediately to learn more and to get the ball rolling on a government refinance or home purchase loan.