Tuesday, March 16, 2010

Fed stands pat on rates-But will mortgage rates go up?

Although the Federal Reserve kept its benchmark interest rate at a record low level Tuesday and made no changes to the key "extended period" policy pledge, a signal that it believes the economy still needs support to get to a sustainable path.

Many are predicting the long term mortgage rates to spike upward. Primarily due to the fact the Fed's buying of mortgage backed securities comes to an end at the end of this month. This has a direct impact on mortgage interest rates that were held at historical lows by the Treasury buting Mortgage Backed Securities creating a false market.

If you have been considering a refinance, or a purchase it may be a good idea to move forward sooner rather than later.

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