Boston Real Estate for Sale
Boston Fed Chief Expects Mortgage Rates To Rise This Spring
Boston Real Estate for Sale
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Eric S. Rosengren, president and chief executive of the Boston Fed, said in an interview at The Courant that he expects [mortgage] rates to rise when the [Fed MBS purchase] program ends — or before, as the end approaches.
Actually, I’ve been surprised that we haven’t seen more of a backing up already,” Rosengren said. “You maybe would have thought you would have seen rates move up more quickly than they have, but nonetheless that is a concern.”
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The mortgage rate increase of one-half to three-fourths of a percentage point from the end of the Fed program would happen regardless of any Fed action in interest rates, Rosengren said.
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Rosengren said the Fed could choose to extend the mortgage buying program if the economy deteriorated dramatically.“That’s not in our forecast,” Rosengren said. “That’s not what we’re expecting.”
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