Fed Votes to Keep Rates Low

August 12th, 2010 // filed under: Buying a Home, FHA Mortgages, Mortgages, Southern Maryland, VA Mortgages

Today, the Federal Reserve voted to reinvest expiring mortgage-backed securities by putting the money into longer-term Treasuries.  Combined with their decision to keep rates at 0 to 1/4 percent, the result should see lenders able to keep mortgage rates low.  The Fed states that they don’t see any substantial inflation issues currently and expect them to remain relatively dormant for some time.

Since their meeting in June, the Fed sees that recovery has slowed even though household spending has slightly increased due to high unemployment, modest income growth, lower housing wealth, and tight credit.  While all of this is not really any surprise to anybody, it is good to see that the Fed acknowledges the situation and is working to keep our financial health and encourage buying and lending to continue to stimulate the economy.

Click here to see the full press release from the Fed.

Related posts:

posted by Jonathan Benya // 1 Comment »

This entry was posted on Thursday, August 12th, 2010 at 7:30 am and is filed under Buying a Home, FHA Mortgages, Mortgages, Southern Maryland, VA Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  1. Tweets that mention Fed Votes to Keep Rates Low | Waldorf Real Estate Blog & Homes For Sale -- Topsy.com said at August 12th, 2010 at 7:53 am

    [...] This post was mentioned on Twitter by Lewis Poretz , Jonathan Benya. Jonathan Benya said: RT @jonbenya Fed Votes to Keep Rates Low | Waldorf Real Estate Blog & Homes For Sale http://bit.ly/bfzeP5 [...]

Leave a Reply