In an earlier Florida mortgage related post, we anticipated that the Federal Open Market Committee (FOMC) would leave the Fed Funds rate alone. We were right. Per today’s announcement, the FOMC voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.
In its press release, the FOMC remarked that the U.S. economy “has continued to pick up”, that the jobs markets is experiencing some improvement, and that housing market has shown “some signs of improvement” as of late.
It’s the fourth of such statements in a row in which the Fed has expressed optimism about the U.S. economy – signaling that the worst of the recession is likely behind us.
Despite its overall positive outlook, the Fed did list a few outstanding items that do offer up reasons to remain concerned:
- Tight consumer credit
- Reluctance among businesses to hire new employees
- Lower overall housing wealth
All told, “Uncle” Ben Bernanke and company maintained a positive tone, and 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. That plan — due to expire at the end of March 2010 – should be noted by today’s homebuyers. Fed insiders estimate that the program suppressed rates by 1 percent through 2009.
The Florida mortgage market reaction to the Fed’s press release is negative, as mortgage rates are rising this afternoon.
The FOMC’s next scheduled meeting is January 26-27, 2010.
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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