Fed to leave Fed Funds Rate unchanged, now what?
So the Fed just announced they are not changing the Fed funds rate for any time in the foreseeable future. What does this mean? It means that the cost businesses pay to borrow money will remain low. Also, any rate tied to Prime (credit cards, HELOC’s….) will also remain low for quite some time. This will allow you to pay down your Home Equity Line balances while the rates are down, as they have been.
But bear in mind 30 year mortgage rates have been trending higher since November 4th when the quantitative easin started. My projections are they are heading higher, so keep that in mind if you have been thinking of refinancing.