Rain City Guide

The Fed leaves Rates Unchanged

Rhonda Porter on 08 10, 2010

The Fed just released their statement that the Fed Funds Rate will remain unchanged stating that current conditions ”warrant exceptionally low levels of the federal funds rate for an extended period.”   

From the Press Release:

“…the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term than had been anticipated….

…the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.¹ The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.”

Here’s the footnote:  1. The Open Market Desk will issue a technical note shortly after the statement providing operational details on how it will carry out these transactions.

Remember, today’s actions do not directly mortgage interest rates however, mortgage rates may be influenced by these actions since mortgage rates are based on mortgage backed securities (MBS).  

Mortgage backed securites have improved since the release of the FOMC Statement.   DOW is down 38 off of earlier triple digit lows.

About the Author: Rhonda Porter

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Rhonda Porter began her mortgage career on April 1, 2000 at Mortgage Master Service Corporation #40445, a family-owned correspondent lender that has been lending in the Pacific Northwest for over 30 years. Prior to mortgage, she was in title industry for 14 years where she managed an escrow branch and gained an invaluable insight to the real estate industry. Rhonda Porter is a Licensed Loan Originator MLO-121324. Inman News named Rhonda one of the Top 50 Online Influencers of 2009. She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker http://www.twitter.com/mortgageporter) and Sellsius 2007 Top 12 Women Real Estate Bloggers and 2007-2008 Maginficent 7 Consumer Articles. Her peers recognized her with the Washington Association of Mortgage Professionals Distinguished Service Award in 2009. Rhonda originates mortgages for homes located in Washington State. You can reach Rhonda at rhonda@mortgageporter.com or by calling (206) 718-9488. Check to see if your mortgage originator is licensed or just registered by visiting www.nmlsconsumeraccess.org. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages nor is she affilated with any advertisers or calculators displayed on this site.