Author: Doug Walker, VP of Sales and Marketing
Phone: 615-370-8888

On September 22-23, the FOMC (Federal Open Market Committee) will meet to discuss the government's MBS purchase program (Mortgage Backed Securities). 

What Does This Mean In English?
At this meeting, it is expected the Fed will make comments about the government's desire to continue buying mortgage securities so the rates stay artificially low. 

What Does This Mean To You?
If you are looking at refinancing or purchasing a home before the end of the year, you might want to get it in gear!  All it will take is one negative comment or insinuation, and the bond market could tank, sending mortgage rates higher.

Fannie Mae's chief economist, Doug Duncan, expects the Fed will extend its MBS purchase program, then slowly wind down.  That could mean more time, but once the news starts circulating about an "end" to the gov't buying program, the markets usually respond well in advance to the actual event. 

Best Course Of Action: If you are going to refinance or purchase, now is a great time to lock in a rate to avoid the market swings.  The bond market has come up over 300 basis points since its lows in June,   which has equated to a rate improvement of about .75%.  Now sure seems like the time to take advantage and avoid gambling that things will get even better - especially knowing the above news is looming.