As you may have read, the Fed made an announcement last week stating that they plan to leave any signicant policy changes alone for the time being. As a result, this has had a visible benefit on rates, as they have currently pushed to 6 week lows.
Financial markets have been eagerly waiting to see if the Fed would move to reduce the amount of Treasuries and Mortgage-Backed Securities it purchases each month in conjunction with QE3 (the third round of “quantitative easing” announced in September 2012). Those purchases have played a key role in keeping interest rates grounded, and just the expectation that they’d be curtailed, has been enough for a relatively meteoric rise in rates since those expectations began ramping up in earnest 4 months ago.
Although we have to consider that eventually the taper will occur and borrowing costs will go higher, we live to see historic lows for a while longer. This is an excellent opportunity to lock in, and for fence sitters to get back in the game, whether that be on the purchase or the refinance side. Call On Q Financial, Inc. today to find out how you can take advantage of this window of opportunity before it is too late.
To read more about the Fed’s recent announcement, visit http://www.mortgagenewsdaily.com/consumer_rates/325275.aspx