About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
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The great interest rates we are now enjoying are not going to last long. A Fed official indicated this week that when the Fed raises rates to stave off inflation it will happen sharply. We get this from a recent AP article:

To prevent inflation from taking off, the Federal Reserve will need to start boosting interest rates quickly and aggressively once the economy is back on firmer footing, Fed officials warned Tuesday.

“I expect that when it comes time to tighten monetary policy, my colleagues and I will move with an alacrity that, if needed, will be equal in speed and intensity” to when the Fed was slashing rates to battle the recession and the financial crisis, said Richard Fisher, president of the Federal Reserve Bank of Dallas.

Although Fisher has a reputation for being one of the Fed’s toughest inflation fighters, it marked the second such warning by a central bank official in recent days. Fed member Kevin Warsh on Friday said the central bank will need to move swiftly when the time comes to raise rates.

Charles Plosser, president of the Federal Reserve Bank of Philadelphia and also a hawk against inflation, waded into the debate in a speech Tuesday in Easton, Pa., saying the Fed may need to act “well before” unemployment — now at a 26-year high of 9.7 percent — returns to normal. The Fed, he said, will need to be on guard “to prevent the Second Great Inflation.”

If you have been thinking about a refinance contact us today in the sidebar. The sooner you lock your rate the better if you would like to refi before rates shoot back up. Rates for most loans this week have been hovering between 5 and 5.5%. We expect them to be much higher soon.

Comments (0) Posted by G.R.A. Admin on Wednesday, September 30th, 2009


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