A couple of days ago, I listened too carefully to "analysts" who were saying that interests rates had bottomed out in the 5-5 1/2% range.
Now it looks as though a recent announcement by the Federal Reserve is impacting mortgage rates more than we had thought. Rates on conforming loans of $417,000 or less, and even Jumbo Conforming (between $417,000 and $729,750) are already sneaking below those levels, and lenders expect to see the long awaited mid-4% rates as soon as next week.
All this is happening because the Feds announced that it would be purchasing another $750 billion in mortgage-baked securities from Fannie and Freddie...bringing the total to $1.25 trillion. It also plans to spend another $300 billion on longer term Treasury bonds over the next six months. Now we can move on to worrying about inflation!
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