Fed Announcement Leads to Lower Illinois Interest Rates
Friday was a very volatile day for the MBS. After gaining some ground from drastic losses over the last few weeks, the 30-year bond auction caused a short sell off, pushing bonds to a daily low.
However, Wall Street Journal Writer, Jon Hilsenrath put a stop to this by confirming that tapering by the Fed would not happen anytime soon. Meaning, the federal stimulus program of purchasing mortgage backed securities will continue for the foreseeable future, which will help to keep Illinois mortgage interest rates near record lows.
Borrowers in Illinois can let out a sigh of relief at this news. With the purchase market in full swing, lower interest rates give borrowers greater purchasing power. Low interest rates allow prospective homebuyers to broaden their price point, as it is more affordable to borrow more at such a low rate.
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