Lower Mortgage Rates Plan by Federal Reserve Bank Slowed through 2010
Posted on | September 23, 2009 | No Comments
The plan to lower mortgage rates by the Federal Reserve Bank has been extended through the first quarter of 2010. Even though the pace of the program has been stretched out about three months home loan rates are expected to stay low. To help the recovery of the housing market the Fed decided to hold the Fed Funds lending rate between a quarter of a percent and zero.
The Fed now plans to reach the goal of buying $1.45 trillion in mortgage backed securities by the end of March rather than by the end of 2009. This is the second time since August that the Federal Reserve Bank has slowed down emergency programs that are designed to help the recovery of the housing market and the overall economy.
Many analysts are saying that mortgage interest rates should remain low for the time being but are going to head higher in the future. If you have been thinking about refinancing now is the time because with the emergency programs stopping in the near future we are going to see mortgage rates move up and possibly even above 6% by the end of 2010.
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Author: Jesse Wojdylo
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