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FEDERAL RESERVE SAYS IT WILL KEEP RATES SUPERFICIALLY LOW AT LEAST THROUGH 2014

By
Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Federal Reserve Says it Will Keep Rates Superficially Low at least Through 2014”

It is a good thing we have an election coming up at the end of this year. For the Fed to keep coming out with these intentions to keep interest rates at these level, will just continue bleeding red ink, for a long time.

Superficially low rates will just mortgage our future, our kids future and our grandchildrens future.The Fed is printing money at levels this country has seldom seen. The administration is creating this false hope that printing money will take us out of the economic crisis that we are in. The only thing that is doing is mortgage our future, our kids future and grandchildren as well.

Maybe as a mortgage broker I should just be happy, that rates stay at, below real market rates, but it is clear the long term damage that is being done.

Federal Reserve Will Continue to Buy MBS

By: Bonnie Sinnock

The Federal Open Market Committee said Wednesday that the central bank will maintain its reinvestments of principal payments from agency mortgage-backed securities and debt holdings into new agency MBS.

Federal Reserve noted that the U.S. economy “has been expanding moderately” since its last meeting but “despite some signs of improvement, the housing sector remains depressed.”

The FOMC will keep the target for the Fed Funds rate at 0 to 1/4%, noting that it believes economic conditions still warrant exceptional low rates through at least late 2014.

Committee member Jeffrey Lacker continued to dissent on the last point while others voted for the aforementioned policy action.

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Good morning Joe,

Time to shut down the Fed....

May 06, 2012 09:33 PM
JOSH EVANS *JoshEvansHomes 516-655-5000
Village Properties of Mineola, LLC - Mineola, NY
Great blog and great job. Keep up the good work and good luck to you this year. Thanks.
May 06, 2012 09:36 PM
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good afternoon Joe.

Another aspect is the senior citizen's savings accounts that get them no interest.

 

May 07, 2012 06:21 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Joe the low rates are good for those that can purchase now, but it is not good for economy as you have pointed out.  We are not going to come out of this mess until the rates start going up and Buyers start to rush to by before they go higher.

May 07, 2012 08:11 AM
Michael S. Bolton
Michael S. Bolton,Inc. - Zimmerman, MN
MN Appraiser

Joe~One can only imagine what's going to happen to the bond market once they try and unravel this mess they've gotten themselves into, should be very interesting. Buckle-up, the fun has only started to begin.

Have an AWESOME evening!

 

May 07, 2012 01:18 PM
Phil Hickey
Right Trac Financial Group - Manchester, CT

Joe, keeping interest rates artificially low and printing money may get you reelected however it is no way to get out of a recession.  At some point the interest rates are going to have go up.  All the extra money being printed is getting pumped into the economy and its creating inflation.  Has anyone noticed that since the money started being printed the dollar has lost its purchasing power(inflation)? Prices are going up. When you have inflation you tighten up the money supply by offering higher interest rates.   The game can't last forever.

May 08, 2012 11:19 AM