09/16/2020
Breaking news! 🗞
Fed holds rates steady and indicates it will stay there for years.
What does that mean for the mortgage industry?? Well, this means that it’s still cheaper for banks to borrower money from other banks from their reserves kept at the Fed in reference to short term loans. The feds does not set mortgage rates, but does have an indirect affect on mortgage rates. On the other hand, it does directly affect adjustable rate mortgages aka ARMs.
So why are mortgage rates so low right now? Since the pandemic, the Fed became a big buyer of MBS (mortgage-backed securities) making it appealing for investors to be willing to buy new mortgages. Which opened up the market for buyers, sellers, and current homeowners to refinance.
It’s a great market to buy, sell and refinance! Contact me for a consultation or a mortgage review to see if it’s possible to save some money off your current mortgage.
Veronica Chambliss
Mortgage Loan Officer/Co-Branch Manager
NMLS # 624877
504-715-4388
https://www.cnbc.com/2020/09/16/fed-meeting-decision-interest-rates.html
The Federal Reserve kept its pledge to keep interest rates anchored near zero and promised to keep rates there until inflation rises consistently.