This week mortgage rates have yet again, made all time historical lows. Factors in this historic mortgage rate movement include the realization that the European debt crisis is going to take a long time to fix and slower than expected improvement in the US economy.
The Federal Open Market Committee (FOMC) Meets
The Federal Open Market Committee (FOMC) met this week and as expected, they left key short term interest rates alone. The Fed Funds Rate (the rate at which banks lend money to each other) is still at 0.000% to 0.250%. The committee has said it believes the economy is growing moderately and that employment will continue to improve, albeit at a slower than desirable pace.
The FOMC also indicated that there are some areas of concern that might affect the US Economy moving forward such as slowing in global growth and concerns in business investment.
Mortgage Rates Moving Forward
Will rates be higher or lower next week? The truth is that nobody knows. We do know that since we are at all time historic lows, there is limited upside in waiting for rates to improve. On the other hand, there is substantial risk that rates will move higher if you wait.
Should you lock now? What is the best program for your needs? We can answer these questions and more with a free consultation where we can put together a strategy to that best fits your unique needs.