What Happens to Mortgage Rates After the Fed FOMC Announcement?
For the last couple of weeks we've had eyes on the FOMC (Federal Open Market Committee) meeting, and waited to hear about the Fed's tapering. When the news finally hit, it caught the markets by surprise - an estimated 90% of the markets expected tapering to start in September, which was expected to cause mortgage rates to go up. However, the Fed announced that they did not have the intention to start tapering off purchases of Treasuries and Mortgage Backed Securities yet. Instead they will wait for continued economic indicators that the economy is improving. That means the talk of tapering is quiet for while, and rates fell an average of .125% to .250% depending on lender.
So will we see rates continue to go down? Probably not, at least not significantly. The big win here is that we didn't see rates go up. When the talk of tapering starts again in earnest, expect to see another rate spike. Until then, enjoy the stability.
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