I came across this article from The National Association Of Realtors that should be of interest to anyone owning or looking to buy a home. The Federal Reserve announced recently that it would keep its benchmark interest rate near zero through 2022. The impact on mortgages could mean record lows. Enjoy the article and give me a call if you have questions or have any real estate needs.
Tim Houterloot – Broker/Realtor
Source: National Association Of Realtors | Repost Houterloot 6/28/2020
The Federal Reserve announced Wednesday that it would keep its benchmark interest rate near zero through 2022—a move that could set the course for record low mortgage rates for the next three years. The Fed’s key rate doesn’t directly affect mortgage rates, but it often influences them. The federal funds rate is what banks charge one another for short-term borrowing.
The Fed’s decision was a response to the economic impact of the COVID-19 pandemic. The Fed also announced it will continue to increase its bond holdings to help preserve the flow of credit. “The Federal Reserve’s view that a rate hike will not occur for three years is a signal to the market to expect an all-in accommodative monetary policy,” says Lawrence Yun, chief economist for the National Association of REALTORS®. “It is also very likely that the Fed will be aggressively purchasing mortgage-backed securities behind the scenes.”
Posted on June 18, 2020 at 2:55 pm by Tim Houterloot