Fed Will Keep Mortgage Rates Low Through 2009
The Federal Open Market Committee (FOMC) released the minutes from their June 23-24 meeting yesterday. While the FOMC does release an initial statement immediately following their meeting, the minutes, released several weeks later, provide analysts and market observers with more detailed information to the discussions as well as the decisions made during their last meeting.
Since November the Fed has run a program to buy up to $1.25 trillion in Fannie Mae and Freddie Mac mortgage-backed securities (MBS) in order to keep conforming mortgage rates low. The FOMC’s minutes definitively indicate that the Fed will remain on track to purchase their total by year’s end.
