Immediate Reaction to Fed's FOMC Statement Drops Rates, Precipitously!
By Dave Woodland, Your Bend, OR Friendly, Knowledgable Mortgage Professional
The FOMC released its announcement this morning at 9:30 eastern. Two very important indications of what the FOMC will do are found in the statement released to the press. 1. They anticipate keeping the “exceptionally low fed funds rate at least through late 2014″. (Had previously been “into late 2013″, so this is favorable to interest rates.) 2. They have announced extending their program to bolster long-term security holdings. The impact to the rates was precipitous. Check out this chart to see how the bellwether 10-yr Treasury dropped 14 bps immediately after the announcement. Mortgage rates continue to improve.