Yesterday, the Federal Open Market Committee met and voted to leave the Federal Funds Rate unchanged at 0.00 - 0.25 percent. In a positive move, they also announced a continued push to purchase mortgage backed securities through the end of 2009, including $300 billion in Treasury securities this Fall.

The FOMC announced that the economic outlook has improved since March due to "easing of financial market conditions," but continues to contract at a slower pace. They continue to be concerned over employment issues, tight credit, and weak sales prospects.

What does this news mean for potential home buyers or those looking to refinance? With household spending showing signs of stabilizing, the Dow closed up yesterday at 8,185.73, causing mortgage rates to increase.

Rates may continue to increase depending on the Fed's response to inflationary pressures while they continue purchasing mortgage backed securities.

Source:

Parsing the Fed Statement

The Wall Street Journal Online

April 29, 2009