The Fed To Keep Interest Rates Low
The Fed has extended their buying of mortgage-backed securities until the 1st quarter of 2010. The Wall Street Journal reported that the Federal Reserve will gradually reduce its purchases of mortgage-backed securities and agency bonds beginning this week, the New York Fed said Wednesday. The Federal Open Market Commmittee announced earlier that it would slow its purchases and extend its program to buy nearly $1.5 trillion in mortgage-related debt through the first quarter of 2010. The New York Fed said it would gradually reduce both the size and frequency of its purchases. By the first quarter, the New York Fed would buy agency debt only every other week.
This is good news for rates as of now. No matter what the case, interest rates are at historic lows. Make sure to click on this link and view the chart of the 30 year fixed rate http://online.wsj.com/article/SB125372876175834787.html?mod=rss_economy.
This could come in handy next time you want to be greedy and wait for lower rates. Interest rates are low so take advantage of it now. When the Fed does stop buying mortgage bonds interest rates are likely to go up. There is a good article below on it and I agree with it 100%.