Borrowers Dodge Higher Mortgage Rates!

The Fed’s actions resulted in NO mortgage rate hike.  Rates are still at historic lows…at least for now!

Borrowers dodged higher rates for now; The Fed could have caused rates to shoot up this week if it had announced the tapering off  its bond-purchasing program Wednesday, when the Federal Open Market Committee wrapped up its two-day meeting.  Instead, the committee “decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Fed’s statement reads.  The Fed will continue to print $40 billion per month to purchase mortgage bonds and $45 billion per month to buy longer-term Treasury securities. These purchases have long kept mortgage rates artificially low. But once the Fed cuts that stimulus, mortgage rates will likely rise rapidly.