The FOMC (Federal Open Market Committee) or sometimes referred to as the “Fed”, concluded its two day meeting today.
In a press release, the FOMC announced it’s thoughts on the state of the economy today and moving forward in addition to its plans for future monetary policy. The equities and bond markets pay close attention to the statements that come out of FOMC meetings as monetary policy as set by the FOMC can significantly impact our economy and the economies around the world.
The FOMC: Extends Exceptionally Low Levels for the Federal Funds Rate at Least Through Late 2014
The FOMC made several statements that have sent mortgage rates back to all time historical lows.
- The committee extended its “forward guidance” on interest rates stating that “economic conditions” are likely to “warrant exceptionally low levels for the federal funds rate at least through late 2014”.
- Current economic conditions: Described as “expanding moderately”. This means that conditions are essentially unchanged, the key point being that they have not worsened, which is good.
- The committee “expects to maintain a highly accommodate stance for monetary policy.” This tells the markets that they’re still willing and able to take measures in the future, especially in relation to inflation, which is good. This is as opposed to stepping aside and letting the market play out, which can be bad if the market can in fact, improve with some monetary intervention.
From the FOMC Press Release:
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
How The Fed’s Statements Affect You and Your Mortgage
Immediately after hearing the FOMC’s statement, mortgage rates fell back down to the all time historical lows they were at last week. This latest development is only the latest in a series of events over the past few months where mortgage rates have been at all time historical lows or set new lows. The unprecedented window is a very unique opportunity to get into a mortgage at the lowest rates we have seen in our lifetime.
We can help you understand how much you qualify for if you are purchasing a new home and help you understand what mortgage best fits your needs. We only need a few minutes with no obligation to put together a strategy that best fits your financial needs and goals for your home purchase or refinance of your existing loan.


Last week mortgage rates again hit all time historic lows. There were also signs of an improvement in housing and the economy as a whole based on some of the Economic data that was released. The markets have opened up this week with mortgage rates close to the all time historic lows of last week.
Buying and selling a home can be a strange combination of very personal feelings and very impersonal relations. Both the buyer and the seller usually have strong emotional connections to the house, but in the course of making the sale, the two parties don’t always meet in person.
This week is a shortened week due to the Martin Luther King holiday being observed today. Last week saw the market hit, yet again, all time historic lows on mortgage rates. Every time we think we’ve hit the bottom, mortgage rates set a new low. Not the worst problem to have!
Once again we’re seeing mortgage rates close near all time historical lows. Again? We may sound like a broken record, but Eurozone debt issues continue to weigh on the markets, pushing mortgage rates lower. This means that there is still an opportunity to refinance or purchase a home with a mortgage that will cost you less than a mortgage would have cost at virtually any other point in US history.
When taking out a mortgage, buyers often consider how they will get a rate that will enable them to pay off their mortgage as quickly as possible. In other words, they want the lowest rate possible, as we all do. Many times it is often only those that are approaching retirement that actually start to think about how they will pay off their mortgage. With careful planning, paying off your mortgage faster can be a realistic goal regardless of what your rate is.
This week is starting off slow with little economic data being released. Two major data releases may impact mortgage rates this week with Beige Book data (relied upon by Fed during their meetings) being released on Wednesday and Retail Sales being released on Thursday.
First and foremost, we hope everyone had a safe and happy New Year’s! Here’s to a prosperous 2012!
Buying a home can be an exciting and somewhat stressful experience. When shopping for your new home, keep in mind that one of the most important aspects of home ownership is often neglected, finding the right mortgage.
Housing has been a bright spot in economic news as of late and there is more positive news coming from the housing sector. The National Association of Realtors (NAR) is
After hitting all time historical lows last week, mortgage rates have opened up this week flat, with little to no change from last week. We start the week with news of the death of Kim Jong il, which may play a role in the market in the future, but seems to have little affect on mortgage rates today.