On Wednesday, March 18th, The Federal Reserve will meet for their FOMC meeting to discuss updates with the economy, the discount rate, and other economic variables. It is expected that The Fed will leave the discount rate at its current level, which is a range between 0-.25%. This means that, most likely, interest rates for homes will remain low, especially those that have good credit.
With the recent news of bank’s balance sheets shrinking 17%, The Fed has taken initiative to help inject liquidity into the credit markets. The Fed is considering a bailout structure in the amount of $600 billion, which would involve buying up bonds that are issued by US housing agencies, such as Fannie Mae and Freddie Mac. Other measures which are being discussed, are the possibilities of buying up US Treasuries and Corporate bonds to help bring stability to the equity markets. With the addition of these measures, the plan could amount to over a trillion dollars.
The Federal Reserve plans to make an announcement on Wednesday at 2:15pm Eastern to discuss the results of their meeting. Indeed such an announcement could have a huge impact on loan modification and mortgage refinance. With more help coming to housing agencies, it creates more incentive for lending institutions to work with your loan. We are still in the best of times to discuss ways to modify your loan, as banks are working more and more with their customers. Start now and CLICK HERE TO BEGIN THE PROCESS OF MODIFYING YOUR LOAN!