FOMC leaves rates unchanged
Rhonda Porter on 03 18, 2009
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.
About the Author: Rhonda Porter
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5 Responses to “FOMC leaves rates unchanged”
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My good friend is a mortgage broker in Portland and he has been keeping me posted. Great news on the low rates.
Towards the end of the day, rates did drop about 0.25-0.375%. We’ll see what tomorrow brings….
I’m of the opinion that the Gov has a range they would like to see rates at…and we’re there. Anything under 5% is an incredible rate.
Rates are in the mid 4’s… for now. Once banks get their fill…we will see them manipulate rates–increasing them them to slow down the volumes.
5 rate sheets from just one lender that I work with today… after the initial rate sheet, the following 4 that I’ve received so far have all been for the worse. Rates tend to go up much faster then they come down.
They really couldn’t conceivably cut rates any further, but there action was extremely significant, not to mention Ben’s speech. The government seemed unwavering on using any and all monetary policy measures to support the flawed infrastructure – and all at the ultimate expense of the dollar.