Fed Says it Will Hold Interest Rates Until Mid 2013
The Federal Reserve sketched a dim outlook for the U.S. economy suggesting it will remain weak for two more years. As a result, the Fed said it expects to keep its key interest rate near zero through mid-2013.
The Fed announced no new efforts to energize the economy in its statement released after its one-day policy meeting. But the statement held out the promise of lower rates on mortgages and other consumer loans longer than many had assumed.
What does this means for the housing market? A continuation of lower interest rates will definitely help today’s buyer qualify for home purchases. It has become increasingly difficult for buyers to qualify for a mortgage due to the stringent loan underwriting guidelines.
Some lenders have adjusted their qualifying requirements. Bank of America is one of a few lenders that actually decreased their minimum score to 580. Other lenders have increased their use of non-traditional credit to increase qualification rates. If you are in need of more information on current loan programs, please complete the form below and a loan officer will call you back within 24-48 business hours.
