Interest

Rates Jump Again As Inflation Threatens To Stick Longer Than Expected

Posted on by TMN Editor
Mortgage rates have increased again as new data suggests inflation is sticking harder than previously thought. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.65%, up from 6.50% the week prior. A year ago at this time, the 30-year FRM averaged 3.76%. The 15-year fixed-rate mortgage rose from 5.76% to 5.89%. A year ago, it averaged 3.01%. “As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation, and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.  “Lower mortgage rates back in January brought buyers back into…

Interest Rates Unchanged; Fed Vows To Buy More MBS

Posted on by TMN Editor
The Federal Reserve on Wednesday kept interest rates effectively at 0 percent and vowed to increase holdings in Treasury securities and mortgage-backed securities to support the economy during the coronavirus pandemic. In a statement following its meeting, the Fed said it “is committed to using its full range of tools to support the U.S. economy in this challenging time.” That includes keeping interest rates in the 0 to 0.25 percent range. “To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to…