As anticipated, Florida mortgage borrowers should get ready for a rate increase per the November 4 FOMC press release.
The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.
The general sentiment from the meeting was that the U.S. economy “has continued to pick up” since the September FOMC meeting and that housing market activity has increased.
It’s the third shot of optimism we’ve received from these post FOMC meetings – a signal that the recession may in fact be over. However, the economy is not entirely out of the woods, and the Fed identified several points to watch out for including:
- Continued job losses for American workers
- Reduced fixed investment by businesses
- Ongoing challenges for the financial markets
In spite of these concerns, the overall tone remained positive, as inflation appears to be held in check.
Also in its statement, the Fed confirmed its plan to hold the Fed Funds Rate near zero percent “for an extended period” and to honor its $1.25 trillion commitment to the mortgage bond market.
The Fed plans to wind down its mortgage market support over the next 5 months, reaffirming its March 2010 exit date. For now, Fed support helps hold mortgage rates down.
The Florida mortgage market reaction to the Fed’s press release is negative overall. As such, mortgage rates in Florida are rising.
The FOMC’s next scheduled meeting is December 15-16, 2009.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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