Some important information came out of today's Fed Meeting.
As expected, they left the Fed Funds Rate alone, keeping it at a low .25%. This is good news for those of us with Home Equity Loans tied to Prime. Eventually, this rate will have to come back up though. It is only a matter of time.
The real news today was that the Fed's purchases of Mortgage Backed Securities will continue and they still plan to spend the $1.25 Trillion allocated toward this program. HOWEVER they will decrease the frequency of their purchases and draw it out through the first quarter of 2010.
The good news is that they are going to finish what they started. There were rumors that they would discontinue the program early. The bad news is that we're very likely to see mortgage rates creep back up into the Sixes early next year.
What does that mean to Joe and Jane Homeowner? Well, if you were thinking of buying or refinancing you'd be wise to take a look at your options now while the rates are most attractive.
The next big question yet to be answered is if the First Time Homebuyer Tax Credit will be extended past November 30 and if they will extend this credit to ALL buyers or increase the amount of the credit.
Stay tuned as I'll be keeping a close eye on this.
Have you benefitted by the lower interest rates or tax credit recently? Do you have questions about the tax credit? Post your comments here or contact me directly at twiggins@affsmortgage.com or 615-627-4869.
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