The Federal Reserve concluded its 2-day Federal Open Market Committee meeting on Wednesday June 6th and at its conclusion announced that it will hold interest rates near zero. With most policy makers anticipating the historically low interest rates to last through 2022. The Fed also announced that will continue its quantitative easing policy and has set a floor for its monthly asset purchases which will include $80 billion in Treasury’s and $40 billion worth of mortgage-backed securities. This in turn will continue to help support low mortgage interest rates and housing demand. The Fed believes that home building and housing in general, will be a leading element of the recovery and pointed to the two months of gains of mortgage applications and better than expected newly-built home sales.
Fed sees interest rates staying near zero through 2022, GDP bouncing to 5% next year