The Federal Reserve Bank cut policy rates to zero in its second surprise move of March. Remember—the Fed does NOT control mortgage rates. Mortgage rates are currently near historically low levels and are expected to remain low.
The Fed announced several additional measures to make more money available for families and businesses. They will inject billions into the bond and mortgage backed securities markets. They will allow banks to loan out monies normally held in required reserves, and they will make even more funds available to banks by extending the time banks can borrow discount funds (the ones with the zero interest rate).
The news has had mixed reactions in the markets, with further declines and continued volatility in stocks. Mortgage rates, however, remain near all-time lows.
As always, HFG will continue to monitor rates and provide updates on industry news. Please reach out to a Licensed Mortgage Professional near you if you would like to discuss your unique situation.