If you are thinking about applying for a Greater Boston area mortgage next year, then chances are you are concerned that mortgage rates will increase in 2013. Fortunately, the Federal Reserve has recently announced that it does not have plans to increase mortgage rates in 2013. If you have been keeping your eye on what the Fed plans to do with mortgage rates in 2013, you will be glad to know that you still have time to apply for a mortgage in Boston or the Greater Boston area with a low interest rate next year.
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In a recent announcement, the Federal Reserve indicated that it will continue to implement its quantitative easing policy QE3. In a continued attempt to revive the economy, the Federal Reserve will continue to buy $40 million dollars in what is called mortgage-backed securities each month. By continuing to buy mortgage-backed securities every month, the Federal Reserve hopes that the economy will fully recover at some point in the future. Due to its continued efforts to revive the economy, the Fed has announced that mortgage rates must remain low for 2013.
Based upon the Fed’s recent announcement, prospective home buyers located in Boston or the Greater Boston area do not have to be concerned about increasing mortgage rates in 2013. This is excellent news for prospective buyers who were planning to apply for a mortgage in Boston next year. With mortgage rates to remain low, prospective buyers do not have to rush to purchase a home this year. With homes and mortgage rates at record lows, homebuyers can still save money next year.
The Federal Reserve’s recent announcement is in direct response to high unemployment rates. By keeping mortgage rates low, the Fed hopes to revive the economy. Although the Fed does not expect overnight results, by continuing to purchase $40 million dollars in mortgage-based securities, the Fed expects the housing market to bounce back in the future.
Although the recovery is slow, the Fed has seen some improvement in the housing market as more new construction homes are being purchased and home prices are slightly higher than they were in recent months. Although the signs of improvement are only slowly coming, the Fed has indicated that by keeping mortgage rates low and taking other important measures, the economy is on the road to recovery.