There’s really nowhere to go but up with the target Fed Funds rate. From the Press release:
“To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion.”
As of the time of writing this post, I have yet to see lenders issue new rate sheets for the better in spite of significant improvements with mortgage backed securities. We should be seeing improved rates soon.
If you are in the market for a mortgage, whether you are buying a home or refinancing, be sure to provide your Mortgage Professional with all the required documentation needed. We are all ready in the midst of a “refi boom” and this will compound the delays.
Real Estate Agents: I highly recommend that you make sure the mortgage companies you have transactions with prioritize purchases over refinance business.
Homeowners who are considering refinancing: watch out for mortgage originators who are promising quick closings. Every aspect of the refinance transaction will become clogged.
Everyone needs to be patient.