September 21st, 2013 3:23 PM by Joan Rusco
In our last post we reminded readers that while mortgage rates have been slowly increasing they are still, by historical standards, quite low. Well, wait a minute! Rates did an about face and you can thank the Federal Reserve Open Market Committee (commonly referred to as the FED) for this reversal in rate directions.
The market was a taken aback this week when FED Chairman Ben Bernanke announced the Federal Reserve was not going to back off its buying of mortgage backed securities. This means the FED is going to continue pumping billions of dollars into the bond market. Why does it matter to you? Because as the FED buys the mortgage backed bonds the interest rates stay down. That translates to continued low rates for you.
This move is a very big deal to VALoans Minnesota clients who are considering a VA Loan refinance or home purchase. It means we can continue offering you a home loan at very, very low rates.
This move by the FED took almost everyone by surprise. Common knowledge was based on Chairman Bernanke's earlier remarks that the FED would start tapering off its mortgage bond buying. That's a primary reason we saw mortgage rates heading north these past months. Now comes the reversal of the FED policy and now comes your opportunity to contact us to take advantage of a low interest VA Loan to refinance or buy your home!