The Fed Won't Raise Rates Until Late 2014

The US Federal Reserve pledged to hold interest rates low until late in the year 2014. Believing that the economy is in a slow and steady recovery, the Fed seems to expect it to need significant help to remain on course. Mortgage rates are not directly tied to the Federal Reserve's action; however, they typically follow suit. This is great encouragement that the mortgage rates will likely remain low providing a boost to housing until the economy has fully recovered.