The FOMC today announced it will maintain its benchmark Fed Funds Rate at a range of 0 – .25 percent. While today’s announcement had little impact on mortgage rates, rates have fallen to historic lows since the Fed launched its program to purchase $1.25 trillion in mortgage backed securities. The Fed also announced it intends to continue moving forward with its mortgage-backed securities and agency debt purchase programs.
Bob Walters, Chief Economist for Quicken Loans says that while the Fed failed to announce any new policy, the tone of their statement spoke volumes.
“While today’s FOMC announcement did not reveal anything new, the Fed’s statement gave a good look into their thoughts on the economy,” Walters said. “The most interesting comment in the Fed’s statement is that they see the pace of economic contraction has slowed. We have seen evidence of this in the latest housing reports, but as the Fed concedes, we still have a way to go before we hit the bottom of the housing market. The good news is, mortgage rates should stay at their current levels for awhile.”
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