What Fed's Latest Move Means for Mortgages
The Federal Reserve may be keeping interest rates intact at near 0%, but consumers planning to buy a home or refinance one in the following months may want to take note: The end of record-low mortgage rates appears to be a step closer.http://ad.doubleclick.net/adj/personalfinance.sm/real_estate;kw=Personal_Finance;kw=Real_Estate;kw=Housing;kw=Mortgage;kw=Spending;kw=Federal_Reserve;columns=consumer_action;contentid=20066;pos=2;sz=300×600,300×250;tile=2;ticker=FNM;ticker=FRE;pagetemplate=1;rsiseg=10024;rsiseg=10044;rsiseg=10048;rsiseg=10050;rsiseg=10054;ord=1315514251?
Granted, Wednesday’s Federal Open Market Committee statement was nearly identical to that issued in September, when the Fed indicated that it plans to extend its purchase of agency mortgage-backed securities through the first quarter of 2010. (Agency mortgage-backed securities, or MBS, are sliced-up pools of mortgages bought by Fannie Mae (FNM: 1.00*, -0.02, -1.96%), Freddie Mac (FRE: 1.13*, -0.03, -2.59%) and Ginnie Mae.) The program, in which the Fed had pledged to pour up to $1.25 trillion, was intended to run through the end of this year.