Pandemic Measures Continue For Now
Mortgage interest rates continue to be close to historically low levels, helped by the continuing easing measures the Federal Reserve implemented at the beginning of the pandemic. These measures included reducing the Fed Funds interest rate to .25%, the lowest level that was last seen during the Great Recession. Additionally, the Fed keeps purchasing historically large amounts of mortgage-backed securities and treasury bonds from the market on a monthly basis, which has a more direct effect on keeping the lid on mortgage interest rates.
Last Chance to Refinance?
Recently more Fed members have been openly discussing the timing on tapering their easing measures which could include raising the Fed Funds interest rate and reducing the amount of mortgage-backed securities and Treasury bond purchases. Both tapering measures could cause mortgage interest rates to start rising again after the longest run at the bottom we have ever experienced. This current run on mortgage rates has been going on now for over a year and a half.
If you haven’t taken advantage of this historic refinance opportunity, time may be running out soon.
Learn more about how the refinance process w