Mortgage Refinance Center, Information and Resources

As widely anticipated, the Federal Reserve Board raised the federal funds rate target from 3% to 3.25%. This is the ninth consecutive 25-basis point increase in the target since the Fed began tightening policy over a year ago. The all-important statement that is released along with the announcement, which the markets read closely to try and determine the Fed?s future plans, was essentially the same as past statements. The Fed is expected to increase short term rates another 1/4% at their August meeting and will likely continue to increase until the target rate reaches 4.0%.

Mortgage rates have actually improved since the announcement. Long-term rates, like mortgage rates, have been falling all year, despite the fact that short-term rates have been rising. Longer term mortgage rates are hitting lows not seen for two years.

These historically low rates have been the driver behind the significant refinance boom that's underway as opportunistic Americans take advantage of the significant savings.