This past week included the most highly anticipated Fed meeting in years as the Fed decided whether to begin tapering back on its QE3 bond purchasing program. Nearly 80% of all bond traders expected the Fed to announce its first taper (cut back) this Wednesday and the anticipation leading to the meeting was electrifying. The Market was surprised to see the Fed announce that a taper would NOT be seen at this time and The Fed was clear that a tapper would begin when unemployment rates near 6.5% (estimated in early 2015).
The Fed announcement to continue its Bond purchasing program at the same rate (85 Billion per month in Bonds to artificially keep interest rates low) has positively affected interest rates (better by a quarter point) and more over created stabilization in the Bond market. This means rates will stay at current levels which is HUGE!! News for home buyers. The senses is still to lock any deal closing in the next 30 days but we can now sit tight knowing that for the meantime, rates have stabilized and are at 2 month lows.
Meet Reed Hazard
Reed Hazard is a residential loan officer servicing the city of Aliso Viejo CA and surrounding areas. For more information, please call the AmeriFirst Financial, Inc. office at 949-973-5226, or visit 15 Enterprise Suite 350, Aliso Viejo CA 92656.