The Fed Holds Rates Steady

Remember, this is the Federal Funds rate which is the rate that banks lend money overnight, not mortgage interest rates.  This can have an affect on interest rates but they aren’t directly related.

So what does this mean for interest rates on mortgages?  It hard to say.  The Fed wants to keep rates low for an extended period of time but they did reiterate that they will stop their purchases or mortgage-backed securities at the end of this month.  Mortgage-backed securities are what move interest rates.  The stronger the demand for them, the better they and rates will get.  Also know as mortgage bonds, they go up and down during the day just as stocks do. 

The bottom line here is that all we do know is that interest rates are low right now so if you are in the market to buy or refinance now is the time to do it.