Saturday, September 26, 2009
The Fed meeting: what it means to you
Just like the rest of us, the U.S. Federal Reserve wants the economy to get healthier. And while economic activity has slowly but surely started to improve over the past few months, the Fed has decided to help.
The Fed has just announced that it will purchase $1.25 trillion in mortgage-backed securities. This is great news if you're looking to refinance or purchase a home, because when the Fed buys large amounts of mortgage-backed securities, it helps to
keep mortgage rates low.
Here's the catch: The Fed says it plans to stop purchasing these mortgage-backed securities soon. And that means that the best time to take advantage of this opportunity to lock in to these historically-low mortgage rates may be right now.
Here's another way of looking at it: Because of these unprecedented Fed actions, you may never see mortgage rates this low again in your lifetime.
Source: Quicken Loans