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Minutes show Fed opted for mortgage bonds to accelerate housing recovery to boost economy

The Federal Reserve structured its latest stimulus program around the purchase of mortgage bonds after members agreed that helping a nascent housing recovery was a good way to lift the broader economy.

Minutes of the Fed's Sept. 12-13 meeting also show that most members now agree that tying a future increase in short-term interest rates to economic measures, such as a specific unemployment rate, could be effective. But members agreed to hold off on the change to work out the details.

After the meeting the Fed said it would keep buying mortgage bonds until the job market showed substantial improvement. The Fed also extended its plan to keep its benchmark short-term interest rate near zero until mid-2015 and left open the possibility of taking other steps.

Bank Rates

Loan Type Graph Rate +/- Last Week
30 Y Fixed Graph 4.07% dw 4.28%  
15 Y Fixed Graph 3.18% dw 3.26%  
30 Y Fixed Jumbo Graph 4.50% dw 4.53%  
5/1 ARM Graph 3.36% dw 3.43%  
5/1 Jumbo ARM Graph 3.69% up 3.56%  
Loan Type Graph Rate +/- Last Week
$30K HELOC Graph 4.36% -- 4.36%  
$50K HELOC Graph 4.06% -- 4.06%  
$30K Loan Graph 5.08% up 5.07%  
$50K Loan Graph 4.51% -- 4.51%  
$75K Loan Graph 4.51% -- 4.51%  
Loan Type Graph Rate +/- Last Week
36 M New Graph 2.93% up 2.92%  
36 M Used Graph 3.47% up 3.46%  
48 M New Graph 3.21% -- 3.21%  
48 M Used Graph 2.98% -- 2.98%  
60 M New Graph 3.23% -- 3.23%  
Loan Type Graph Yield +/- Last Week
6 month Graph 0.34% dw 0.35%  
1 yr Graph 0.66% -- 0.66%  
5 yr Graph 1.34% dw 1.35%