Last week, incoming Federal Reserve Chairman Janet Yellen was on Capitol Hill for her confirmation hearings, and she signaled continued support for the Fed’s bond-buying program. This is good news for keeping rates at or near historic lows.
To stimulate the economy, the Fed has been buying $85 billion in bonds each month. In past monthly statements, they have said the timing of cutting back or “tapering” their bond purchases will depend on economic reports going forward.
Yellen made the comment last week that “unemployment is down from a peak of 10%, but at 7.3% in October, it is still too high, reflecting a labor market and economy performing far short of their potential.
Bottom Line for Mortgages
Mortgage rates did improve slightly at the end of last week. It remains an excellent time to get pre-approved.