Today, in its first meeting in 6 weeks, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged.

Fed Funds Rate Held Near 0.000%

The Fed Fund Rate remains at a historical low, within a prescribed target range of 0.000-0.250 percent.

In its press release, the FOMC said that, since June, the pace of economic recovery “has slowed”. Household spending is increasing but remains restrained because of high levels of unemployment, falling home values, and restrictive credit.

Today’s statement shows less economic optimism as compared to the prior year’s worth of FOMC statements dating back to June 2009. The Fed is looking for growth to be “more modest in the near-term” than its previous expectations.

Fed Stays On Message; No New News On The Economy

Weaknesses aside, the Fed highlighted strengths in the economy, too:

1. Growth is ongoing on a national level
2. Inflation levels remain exceedingly low
3. Business spending is rising

As expected, the Fed re-affirmed its plan to hold the Fed Funds Rate near zero percent “for an extended period”.

There were no surprises in the Fed’s statement so, as a result, the mortgage market’s reaction to the release has been neutral. Mortgage rates are unchanged this afternoon.

The FOMC’s next meeting is scheduled for September 21, 2010.

Join The Refi Boom Before Rates Rise

Mortgage rates are holding at all-time low levels. Regardless of how long you've owned your home, you may be eligible for a refinance. Talk to your loan officer about a rate quote, or . I'd be happy to get you pricing right away.

(Post adapted from Bring the Blog)

Wednesday, in its first meeting in 5 weeks, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged.

The Fed Fund Rate remains within its target range of 0.000-0.250 percent.

The Recovery "Is Proceeding"

In its press release, the FOMC said that, since April, "the economic recovery is proceeding" and that the jobs market "is improving gradually". Business spending "has risen significantly", too, with the exception of commercial real estate.

The June FOMC statement is the 8th straight press release in which the Fed shows optimism for the U.S. economy, dating back to June 2009.  Since last year, the Fed has terminated all of the programs it created to support the economy through the economic crisis.

Also, as expected, the Fed re-affirmed its plan to hold the Fed Funds Rate near zero percent "for an extended period", citing that "inflation has trended lower" recently.

The recession is widely believed to be over.

Despite Economic Growth, Threats Linger

And, although the Fed's June statement acknowledged economic growth, it highlighted lingering threats, too.

1. Employers remain reluctant to hire new workers
2. Household wealth (i.e. equity) is lower
3. Bank lending is contracting

Furthermore, the Fed wrote "Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad."

Translated : Europe concerns us.

That's a big deal for mortgage rate shoppers because as Europe has faltered financially and economically since, the U.S. mortgage market reaped the gains.  Mortgage rates are below the all-time lows of last year and poised to drop more.

Locking Rates : Strike While The Iron Is Hot

Mortgage rates are low and -- as many times as we say it -- they can't stay this low forever. They sure seem to, though, don't they?

It's just, I'm not one to mess with chance and maybe you're not, either. Call in that rate lock today, folks.

With 30-year fixed mortgage rates cutting 4.500 percent, it's not like an extra 1/8 percent dip will change your life going forward.  And I like the idea of a 4.500 rate over the next 30 years, though. How about you?

Lock your mortgage rate with a simple phone call to 513-443-2020, or, save time and just send me an email with your details. I'm happy to get your rate locked right away -- before rates creep back higher.

(Content adapted from Bring the Blog, a daily blog-writing service for mortgage and real estate salespersons)

Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged, in its target range of 0.000-0.250 percent.

In its press release, the FOMC noted that the U.S. economy "has continued to strengthen" and that the jobs markets "is stabilizing".  It also said that business spending has "has risen significantly".

This is a slight departure from the Fed's January statement in which housing was not mentioned at all, and business spending was said to be "picking up".

The change is notable, even if barely detectable.

Today's statement also marks the 6th straight session after which the Fed described the economy with optimism.  The 2008-2009 recession is over and that growth is returning to Ohio and the U.S., in general.

The economy is not without threats, however, and the Fed identified several:

1. High unemployment threatens consumer spending
2. Housing starts are at a "depressed level"
3. Consumer credit remains tight

The message’s overall tone, however, remained positive and inflation remains within tolerance limits.

Lastly, the Fed confirmed its plan to end its $1.25 trillion mortgage markets commitment in March 31, 2010. Fed insiders estimate that the bond-buying program lowered mortgage rates by 1 percent since its start. Rates should rise once the program expires.

Mortgage market reaction is muted to the Fed's press release. Mortgage rates are unchanged this afternoon.

The FOMC’s next scheduled meeting is a 2-day affair, April 27-28, 2010.

(Content supplied by Bring the Blog)