Mortgage News

Federal Reserve Chair Ben Bernanke said recently that he could make no guarantees that the current economic recovery will last, but he promised to keep interest rates at low levels for “an extended period.” Central bank officials met to discuss monetary policy in the middle of last month.

Many have worried that rates will go up when the Fed stops purchasing mortgages on the open markets. If and when that program ends, rates will rise, but most financial observers say it is very likely they won’t skyrocket. Keith Gumbinger, a vice president at financial publishers HSH Associates, predicts that the end of Fed intervention will push rates up about three-quarters of a point for a 30-year conforming loan–somewhere in the mid-five percent range…Source: Associated Press