Tidewater Real Estate Blog

August 12th, 2009 1:26 PM
When the Federal Reserve ends its meeting on Wednesday afternoon, it is almost certain to leave the key rate at or near zero and pledge to hold it there.

That makes it likely mortgages will stay historically low and rates on home-equity and other consumer loans will hug 3 percent.

But it is unclear whether the Fed will continue some programs that have kept mortgages and other consumer debt even lower than the market might expect. One such program involves buying U.S. Treasurys. The Fed is set to buy $300 billion worth of Treasury bonds by the fall. It has bought $235 billion already this year.

"I think they'll let it expire. It seems the mood turned against Treasury purchases in the last couple of months, and there's been some skepticism whether it has worked in bringing rates down," says Michael Feroli, an economist at JPMorgan Economics.

Posted by Brad Nichols on August 12th, 2009 1:26 PMPost a Comment (0)

Subscribe to this blog
Recent Posts:
Archive:
My Favorite Blogs:
Sites That Link to This Blog:

Brad Nichols of Rose & Womble Realty 123 S Lynnhaven Rd Virginia Beach, VA 23452-7401
Phone: Fax:

Home Inspection | Curb Appeal List | Insurance Closing Costs | Getting the Highest Price | Free Home Valuation | Pre-Approval | City and School Info | 2010 Buyers Guide | 10 Steps | Favorite Sites | Home Search | MILITARY | Closing Costs | First Time Buyers | Inspection Tips | Glossary | Home | Writing the Offer | Mortgage Shopping | Lender Types | Staying Approved | Seller Paid Closing | 9 Steps to Ownership | Daily Rate Advisory | Real Estate Blog

Copyright © 2012 Brad Nichols of Rose & Womble Realty
Portions Copyright © 2012 a la mode, inc.
Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
All rate, payment, and area information are estimates and approximations only.