The Federal Reserve Open Market Committee (FOMC) released their much anticipated Interest Rate Decision and Policy statement today. As was widely expected they left the Fed Funds Rate at 0 to .25%. Mortgage Rates reacted positively to the news that the Feds believe that inflation will remain subdued. Inflatation is the enemy of low interest rates.  The FOMC statement left the key words “extended period” of low rates in place which was rate friendly news.  There are still concerns that an extended recovery can’t continue without a stronger jobs outlook. The Feds will do everything in their power to avoid a “Double Dip” Recession. Apparently there is some concern since they did announce they will re-invest the proceeds from its maturing mortgage bonds back into long term government debt. Treasury Bonds rallied on the news which was positive for Mortgage Rates.
For now it looks like the best mortgage rates since the 1950s will stay around for a bit longer. If you or anyone you know is considering a home purchase or refinance now is the time to act. There is a lot of buzz out there surrounding what will happen with the direction of mortgage rates. My advice is to act now. Mortgage Rates haven’t been this low for over 50 years.
There are many factors that determine the exact rate you will receive such as credit score, downpayment amount, equity position, and type of loan program. Please give me a call at 757-773-5503 to discuss the best rates available for your situation. We specialize in all types of mortgage financing such as FHA, VA, Conventional, 203k rehad, and Reverse Mortgages.
