We were all really surprised a few months ago when the FED decided to postpone tapering of federal aid and bond purchasing keeping Mortgage interest rate “artificially low” for the time being.
Let’s not be too surprised this time if these early reports are incorrect okay…
This is the news that Bloomberg reports and other news sources.
Next week the FED will be meeting again.
This time lets not be too surprised if they do what they can to keep rates low for the time being.
I’m sure good old Ben Bernanke would hate to see rates sky rocket right before he leaves his post as FED Chairman.
The Federal Reserve is reportedly no longer in a rush to cut back on the $85 billion it spends per month on its bond-purchasing campaign, which has been helping to keep borrowing costs low. The Fed is now unlikely to start tapering its program until next year, The New York Times reports.
Job growth has improved the last few months, which the Fed has said it will use as a gauge to decide when to start winding down its bond purchases.
In June, Fed Chairman Ben Bernanke predicted that the Fed would begin to taper its purchases by the end of this year. The announcement brought a shock-wave to markets, and drove 30-year fixed-rate mortgages up a full percentage point.
The Fed meets next week for its final policy-making committee meeting of the year, and they may still decide to make a cut next week. However, based on recent public comments from members, the move is looking unlikely, The New York Times reports.