Low mortgages rates…are they Here to stay?
Last Wednesday, the Fed’s policy makers said they would maintain the near zero interest rates instituted earlier this year, indicating they expect to keep rates at basement levels through 2022. In its statement, the Fed also said that it would continue aggressively buying government and mortgage-backed bonds at a steady rate to keep markets functioning.
What does this mean for mortgage rates? Thanks to these announcements, home buyers rushing to lock in record low mortgage rates likely have a bit more time to shop.
The measures are the most extreme since the 2008 financial crisis and were first announced in mid-March, as steps to limit the spread of the coronavirus wreaked havoc on U.S. businesses and kept house hunters on the sidelines. By reiterating its commitment to these tools, the Fed is indicating that the economy may take longer to recover than hoped, but is also showing that it will take extraordinary measures to help consumers.
The Dow plunged more than 1,800 points on Thursday as investors reacted to the Fed’s decision and a spurt of new COVID cases around the country.
Did You Know…
According to FICO regarding credit scores:
<600 = 21% of peeps
600-699 = 23% of peeps
700-799 = 40% of peeps
800 and higher = 16% of peeps
You get the better/best rates when you are 700 or higher. Know where you are and learn ways to improve your credit scores. Here is a good article: ￼￼https://www.callsarahfirst.com/2018/07/09/want-to-improve-your-credit-for-a-home-purchase/