Federal Reserve
Mortgage rates defy forecasts
Mortgage rates defy forecasts

As 2014 arrived, experts were confident that the 30-year mortgage rate would rise to at least 5% this year as the Federal Reserve cut back a bond-buying program, which had depressed the rates to unheard-of lows in 2013. So much for the experts. The Fed has reduced purchases to $20 billion a month in mortgage bonds, down from $40 billion when the program began in September 2012. Yet lenders this week were offering 30-year fixed home loans at an average of 4.2%, the lowest rate in six months, according to home finance giant Freddie Mac. According to one leading Southland mortgage broker, Jeff Lazerson, certain borrowers with excellent credit are once again able to get 30-year loans with...