The Federal Open Market Committee (FOMC) met yesterday and today and decided to leave rates unchanged, ending its nine-month course for dropping the Fed Funds Rate. Rising inflation concerns and hints of a rebounding economy led the Fed to keep its target fed funds rate at 2%. This will keep the prime rate at 5%, which is the rate that directly affects interest rates on equity lines and credit cards.
This news has moved mortgage backed securities lower as the market reacts to the Fed's position. We have received an alert to lock as the market's reaction could potentially move mortgage interest rates higher.
Below is a link to read the Fed Statement through CNN Money if you are interested.
http://money.cnn.com/2008/06/25/news/economy/fed_statement/index.htm?postversion=2008062514
Please feel free to call us if any questions or if we can help you in any way.
______________________________________________________
Real Estate Broker
The Duggan Group Corporation
The Duggan Team
Convenience. Experience. Results.
San Ramon CA 94583
650.678.5050 cell
925.806.9126 office
925.406.0925 e-fax
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