What the Fed Said

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20140504_210758In a nutshell, the Fed will no longer be manipulating mortgage rates at artificially low levels. As I write this, I’m receiving intraday rate sheets from some lenders with pricing for the worse.

This is from the Fed’s Press Release:

…The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program. Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability. Accordingly, the Committee decided to conclude its asset purchase program this month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee’s holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions….

How much will this impact mortgage rates?  I’ll revisit this post later today.  As I’m writing this, 11:29 am on October, 29, 2014, I’m quoting:

  • 30 year fixed conventional: 4.000% (apr 4.126%) priced with 1.047 points.

Rates quoted above are based on a purchase in the greater Seattle – King County area with a sales price of $500,000, 20% down payment and a loan amount of $400,000. The home buyers have excellent credit with credit scores of 740 or higher and the transaction is closing by December 5, 2014 or sooner.

Rates quoted are subject to credit approval and may change at any time. This is just a small sample of the rates and programs that I have available. If you would like me to provide you with a mortgage rate quote for your home purchase or refinance on your home located anywhere in Washington state, please click here.

3:57 pm update: No change to rates from what I quoted above and, in addition, the rate that I quoted at 11:29 am today is not far off from what I quoted for the 30 year on Monday.

 

 

 

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  1. […] Last week the Fed formally wrapped up their aggressive buying of mortgage backed securities (QE) which helped to keep mortgage rates at such a low level over the past couple of years. This was not a surprise to the markets as the Fed had continuously reiterated their plans to end QE in October. Mortgage rates seem to be slowly trending higher. […]

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