FED DOES NOT TAPER – INTEREST RATES IMPROVE TO 6 WEEK LOWS
September 23rd, 2013
The FED announced on Wednesday that they will not taper their bond purchasing program at the present time. This announcement went against many market prognosticators, helping push rates to their lowest levels in 6 weeks – and near their lowest levels in 4 months.
30 Year Fixed dropped to 4.25% and 15 year fixed dropped back below 3.5% to 3.375%. ARMs did not move as much – 5/1 ARMs currently start at 2.875% and 7/1 ARMs start at 3.5% paying a point or less.
The FED’s reasoning was that the economy had not shown enough to warrant reducing the stimulus. If the FED did taper, everyone knew rates would go up very quickly. This could be a change of tone/direction for the FED, possibly indicating that they feel that the higher interest rates of the past 4 months have already negatively affected the economy.
Still there will be constant pressure on rate markets unless the FED announces they no longer will taper. The FED meets again at the end of October, and made it clear that they could choose to taper at anytime.
Enjoy the lower rates while they are here – hopefully they will stay for longer than we expected.
Make it a great week!!
BEST VALUE OF THE WEEK:
15 Year Fixed at 3.5% paying 0 points
5/1 ARM at 3.375% paying 0 points
TODAY’S MORTGAGE INTEREST RATES:
30 year fixed: 4.25% – .99 points, 4.5% – 0 points, 4.625% – $0 costs
20 year fixed: 4.125% – .59 points, 4.25% – 0 points, 4.5% – $0 costs
15 year fixed: 3.375% – .81 points, 3.5% – 0 points, 3.75% – $0 costs
10 year fixed: 3% – .98 points, 3.25% – 0 points, 3.625% – $0 costs
5/1 ARM: 2.875% – 1 point, 3.375% – 0 points, 3.75% – $0 costs
7/1 ARM: 3.5% – .85 points, 3.75% – 0 points, 4.125% – $0 costs
30 year fixed FHA: 3.75% – .82 points, 4% – 0 points, 4.125% – $0 costs
15 year fixed FHA: 3.25% – .99 points, 3.625% – 0 points, 3.75% – $0 costs
30 year fixed VA: 4% – .14 points, 4.125% – 0 points, 4.25% – $0 costs
Interest Rates Improve to 6 Week Lows
