Purchase | Refi     512-710-1400

GET STARTED

APPLY NOW (CLICK HERE)

PREQUAL LETTER

LETTER REQUESTS (CLICK HERE)

fed funds rate

The FOMC kept the short term Fed Funds rate unchanged (between 0% and .25%) with a 9 to 1 vote

The FOMC kept the short term Fed Funds rate unchanged (between 0% and .25%) with a 9 to 1 vote. They also commented that economic conditions warrant exceptionally low levels of the Fed Funds rate for an extended period. Kansas City Fed President Thomas Hoenig was the lone dissenter, citing against the policy believing that a repeated expectation could lead to the buildup of “financial imbalances” and run the risk of macroeconomic and financial instability.

Fed To End MBS Purchase Program

The Fed statement essentially followed the expected script, demand was strong for the Treasury auctions, and much of the economic data released during the week was stronger than expected. The net effect was a small increase in mortgage rates during the week.

Mixed Week for Mortgage Markets

This week's economic news was mixed for mortgage markets. A speech from Fed Chief Bernanke pushed mortgage rates lower early in the week, but weak results in the Treasury auctions caused them to turn higher again later in the week. In the end, mortgage rates finished with little net change.