Like the cavalry to the rescue, the Federal Reserve came over the hill today and set forth an unprecedented stimulus package to the tune of $2.3T. This is to provide liquidity, relief and help to stimulate the economy.
From the Fed’s statement on Thursday morning: The Federal Reserve took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus.
The Treasury Department indicated in a separate statement on Thursday that these municipal lending options will provide states, counties with more than 2 million residents, and cities with more than 1 million people with funding “to provide essential services to citizens” while offsetting “the delay in state and local tax receipts caused by the derferral of the tax filing deadline” to mid-July.
Because of this momentous move from the Fed, mortgage rates began trending down again at the end of this week. Freddie Mac reports that the 30-year fixed-rate mortgage was 3.33% with 0.7 in points and fees. Low rates will continue to be seen given the current environment along with low inflation. To top it off, the stock market has its best week in 45 years after many weeks of constant decline.
To learn more about what is happening, reach out to us today.
Courtesy of Mortgage Market Guide
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