Source: InMan
Click here for full article
The U.S. Federal Reserve’s June summary of economic projections released Wednesday, June 10th shows interest rates near level zero lasting the rest of this year and the next couple of years to support economic recovery. That could mean the record low mortgage rates the real estate industry is seeing will continue.
“What the June [summary of economic projections] shows is a general expectation of an economic recovery beginning in the second half of this year and lasting over the next couple of years, supported by interest rates that remain at their current level near zero,” Federal Reserve Chairman Jerome Powell said Wednesday, June 10th during a press conference.
“Of course, my colleagues and I will continue to base our policy decisions on the full range of plausible outcomes, and not on a particular forecast,” Powell added. “This risk management approach is the best way we can promote our maximum employment and price stability goals in these unusually uncertain circumstances.”
Powell also acknowledged that the Fed had been purchasing, “sizable quantities,” of Treasury and agency mortgage-backed securities to support the markets and provide liquidity. As the markets improved, the Fed slowed the purchase of mortgage-backed securities, but still plans to increase its holdings of mortgage-backed securities over the coming months.
Click here for full article