U.S. mortgage bond rates are at record lows following a Federal Reserve decision to swap out its purchases of short-term mortgage bonds for long-term bonds.
This will raise the price of bonds and reduce their yields, leading to lower mortgage interest rates.
The Federal Reserve is doing everything it can to avoid the American economy slipping back into recession.
There’s been an uptick in mortgage refinancing due to lower interest rates but high lending standards and a large percentage of homes being underwater limit further growth, and put downward pressure on U.S. economic growth.
Those with great credit will prosper from the latest Fed move and those who don’t won’t be helped much.