“The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions,” the FOMC said.
If you have read any of my other posts or have been paying attention to mortgage news, then you know that the Fed began to taper off the purchasing of mortgage backed securities a while back. Well the taper is officially over. The FOMC (Federal Open Market Committee) has concluded it's more than two year old asset purchase program in part because of the substantial improvements to the outlook of the labor market and the strength in the economy. Since the committees last meeting the economy has been expanding at a moderate rate.
Jason Moon Real Estate Broker with ColdWell Banker Bain. Seattle, WA