Mortgage rates trended higher this afternoon after the Fed stated they will prune another $10 billion per month from their bond buying program which has been keeping mortgage rates artificially low.
From the FOMC Press Release:
“…The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions. In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions since the inception of the current asset purchase program, the Committee decided to make a further measured reduction in the pace of its asset purchases. Beginning in April, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $25 billion per month rather than $30 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $30 billion per month rather than $35 billion per 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….”
The DOW closed down 114 points.
If you would like to take advantage of low rates to buy a home or refinance your home located anywhere in Washington state, where I’m licensed, please contact me!
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