Mortgage rates tick upward on news from the Fed.
"The Federal Reserve should begin to sell off its stockpile of mortgage-backed securities as the recovery gains strength," Philadelphia Fed President Charles Plosser said in a speech on Wednesday.
"As the economic recovery gains strength and monetary policy begins to normalize, I would favor our beginning to sell some of the agency mortgage-backed securities (MBS) from our portfolio rather than relying only on redemption of these assets," Plosser said.
In order to sell more MBS, yields would need to move higher to attract buyers. Since mortgage rates are largely determined by MBS yields, mortgage rates rose after the news.
As the economy recovers, mortgage rates are likely to increase.
Now is the time to lock in those low rates and purchase a home.
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