Mortgage interest rates have been very steady for the couple of months. There has been a little change here and there, but not much movement. The Federal Reserve met this week and after the meeting released a statement that basically said they were leaving interest rates alone, they also confirmed that they were going to leave rates at 0.00-0.25% until sometime late in 2014. The Fed rate has not changed since December 2008. Five years ago it was 5.25%!
In the statement that was released, they also commented that there has been some economic improvement and that the economy has "expanded moderately" since their last meeting in January 2o12. The Fed also added that there are significant risks out in the global economy with Europe and Greece and that it could fall over to the US.
With the announcement and the comments reflecting a slightly better economy and employment numbers increasing, the stock market improved and mortgage rates got worse! There was a huge sell off of mortgage backed securities as investors pulled out of the safer bonds and moved money into the stock market. Wednesday we saw rates increase between .125-.25% - they are still wonderful however if you are looking to buy or refinance, you will want to lock in sooner than later.
