How the Fed’s tapering timeline could affect mortgage rates

The Federal Reserve could start its bond purchase tapering by mid-November. The minutes from September’s Federal Open Market Committee meeting shows committee members discussing tapering bond and Treasury purchases by $5 billion and $10 billion each month, respectively. The target date to finally end the $120 billion a month in purchases ($80 billion in Treasurys, $40 billion in mortgage-backed securities) would end mid-2022 if there were no disruptions.

Raising interest rates, however, will be a more difficult process as the labor market continues to be an enigma for economists.

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