The Veridian Blog

Mortgage rates continued its ascent last week from all time lows from early-January.  The FOMC meeting adjourned with no change to key short-term interest rates, keeping the benchmark Fed Funds Rate near 0%.  The Fed indicated that they were ready to buy longer-term government securities such as the 10-year Treasury Note and 30-year Bond if they felt that it would generate lending.  This is good news as it creates another buyer for all the debt that is surely to arise from the large stimulus packages being conjured by the government. 

Despite this encouraging sign, mortgage rates remain elevated for the time being.  Historically, rates are still extremely low, under 6.0%, but many of us have been spoiled by the all-time lows generated during the last 60 days as well as rumors of rates eventually falling to the 4.0% range.