Friday, August 14, 2009

Mortgage Rates Will Likely Rise by the End of the Year

For most of the year, mortgage interest rates have been at their lowest ever. One of the main reasons they've been so low is because the Fed was buying Treasury bonds. At the latest Federal Reserve Policy Meeting, this is what they said:
  • The Feds efforts to artificially reduce mortgage rates will end in October. This means if you want a sub 6% interest rate, you'd probably better act quickly.
    • The Fed said, “Economic activity is leveling out.” It added that it expected inflation would remain “subdued for some time.”

      The Fed said it will keep the short-term key interest rate near zero, but it will end its program to buy $300 billion worth of Treasury bonds by the end of October. Buying bonds was one of the Fed’s efforts to drive down the cost of home mortgages.


3 comments:

Mike said...

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commercial real estate said...

yeah, hopefully that would happen...

Newport Condos for Sale said...

This news might put some negative impression on real estate market. Thanks for sharing such a nice port

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